Kudrin urged to prepare for falling oil prices

Again disappointing forecasts.

01.Mar.17 2:12 AM
By Catherine Brooke
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Kudrin urged to prepare for falling oil prices

On Tuesday, February 28, head of Center for strategic development Alexey Kudrin has issued a new disappointing Outlook for the Russian economy. It happened in the framework of the investment forum, which last two days is taking place in Sochi.

According to Kudrin, now the price of black gold is very close to its maximum limit. This means, soon the quotes will go down again, starting a new round. When you do this, things will only get worse: if the growth potential of oil prices confined to around 60 U.S. dollars per barrel, which is above the present rate of 10 percent, the level of the potential drop is much higher. In the worst case, Russia will trade black gold at a price of $ 40 per barrel, 30 percent below the present rate (February 28 for a barrel of oil requested about $ 55).

However, thanks to an agreement by OPEC and several other countries to reduce oil production, with the worst case scenario may never come. According to Kudrin, Russia will be lucky if prices remain at the level that we have now. Not to say that, despite the production cuts, oil prices significantly rise and have not started. In addition, oil markets, according to specialists, is very sensitive to the overall world political component, overreacting even on the speeches of individual politicians.

As noted by former Finance Minister, in the next six months the price of oil Brent will be stable, however, after six months and can attack the same round, he predicts.

It should be noted that this is not the first negative forecast of Alexei Kudrin. He previously stated that in 2016 will be with a probability of 99.9 percent increased taxes.

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