Oil prices showed an increase of more than 20% and break the mark of $50 per barrel, a rise largely for speculative reasons. This was reported in the press service of the Ministry of economic development, RIA Novosti reported.
The Department stated that this is due to the upcoming September OPEC meeting to discuss, including a possible freeze of oil production.
“At the same fundamental parameters of the oil market are changing in line with the baseline projections. The proposed excess oil is reduced, but this process will not be completed until next year. While still very high inventories of oil in the world,” said the Ministry.
The Ministry also noted the reaction of the shale oil producers to increase prices, namely, the sharp rise in the number of drilling rigs in the U.S. in the last two or three months.
“45-50 — steady range for the next year or two. Our medium-term forecasts are based on rather conservative adjustments to the base $ 40 per barrel,” the Ministry added.
