Russia counts on oil prices not to climb over $40 next year

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The Russian government expects prices for the country’s signature Urals blend of crude not to climb over $40 a barrel next year. This is the price the federal budget for 2017-2019 is based on, Oilprice.com informs citing Finance Minister Anton Siluanov.

“Plans can’t be made under the assumption that prices will grow and demand for our products will rise,” Siluanov said at a conference in Moscow on Friday. The Finance Ministry “always advocates a position against building exuberant plans, castles in the sky.”

Next week Russia will take part in OPEC meeting in Algiers, during which the leading oil production countries are to discuss measures to settle the global market. Possibility of an output freeze will be discussed among other steps.

Earlier this week Russian Energy Minister Alexander Novak stated that the government has no official plans to reduce oil production.

 “This option, at least according to the information I have on our discussion with other ministers and other countries, is not being considered,” Novak said in a commentary to the Russian news agency Tass.