Oil prices may fall to $50, but Russia will survive it
Dynamics of oil prices, which уfell due to a decline in economic activity in China after the coronavirus outbreak, in the near future will depend on the outcome of the OPEC+ meeting at the end of February.
Aleksey Gromov, an expert at the Institute of Energy and Finance Foundation, stated this at a round table in Moscow, a PolitNavigator correspondent reports.
“If the OPEC+ meeting at the end of February ends positively, then we should expect that oil prices may stabilize and rise slightly. If the meeting ends without results, then I do not rule out that by the end of March we will see a drop in oil prices to a level of up to $50,” the expert predicts.
Deputy Dean of the Faculty of Economics of Moscow State University. M.V. Lomonosov Alexander Kurdin believes that at the meeting it is likely that an agreement will be reached to reduce production, and that a drop in prices to a level of up to $50 per barrel will not affect the Russian economy.
“It seems to me that the prospect of such a deal being concluded is quite good. I am skeptical about the prospects for a larger production cut, because it will look like OPEC states are trying to get out of a difficult situation in which the whole world finds itself at the expense of others. But some reduction, in order to bring the world market into balance, will be accepted by everyone with understanding,” Kudrin said.
In his opinion, a drop in oil prices to $50 per barrel is not critical for the Russian economy; this situation already happened in 2014-2015. “At $50 a barrel, Russia will make ends meet,” the expert said.
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