Novak predicts decline in oil prices of $50 per barrel

Now the tensions on the oil market for a number of reasons is growing, according to the International energy Agency (IEA). “If oil exports of Iran and Venezuela will continue to fall, the situation on the market tightened and prices may start to rise, the analysts of the IEA.

Competition of forecasts

According to sources Bloomberg, Saudi Arabia thinks $80 per barrel reasonable price for oil Brent in the short term with the introduction of US sanctions against Iran and a decrease in the supply of the country on the external market. The Kingdom wants to keep oil prices ranging from $70 to $80 per barrel on the background of the postponement of the IPO of the national oil company Saudi Aramco and needs in financing several large projects in oil production, previously reported by Reuters, citing its sources in the government of the country. A US President Donald trump even blamed OPEC manipulating prices. But the Minister of energy of Saudi Arabia Khalid al-Faleh said that neither OPEC as a whole, nor each of the countries individually do not aim the establishment of a particular oil prices.

However, the long-term trend of oil prices decrease, the joint regulators. In the Ministry believe that the global demand for oil will gradually decline, and competition between countries for the monetization of hydrocarbons and stimulation of oil production will continue to grow.

The dead weight of the oil reserves

While Russian oil production could start to fall, warn the officials. This will be the case if the government does not prostimulirujte growth trudnoizlechimykh resources, the transcript of the meeting of the government on the development of the oil industry, held on Tuesday 18 September.

“If we do nothing, we will not develop deposits that are hard to recover, and by 2035 in the optimistic scenario we will produce two times less, and pessimistic – nearly four, to 146 million tons,” – said at the meeting in the government Deputy Prime Minister Dmitry Kozak.

The Russian government plans to November 1, to prepare a road map for the inventory of fields to further establish the differentiated tax rates. This card will enable from next year to begin moving toward the development of those fields that currently lie dormant on the balance sheet of oil companies and will not be used, said Kozak.

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