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Page added on June 22, 2015

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Russian minister: Oil markets stable

Russian minister: Oil markets stable thumbnail

From the Russian perspective, the situation in the global crude oil market is starting to stabilize, the minister of economic development said.

Crude oil prices starting in June 2014 began a steady decline, dropping from levels above the $100 per barrel mark to below $50 per barrel in early 2015. A year on, Russian Minister for Economic Development Alexei Ulyukayev said “the oil market has attained certain stability.”

Brent crude oil prices have hovered in a range between $63 per barrel and $65 per barrel for most of June. Oil prices have been responding to signs an oversupplied market scenario was easing in a tepid, but steadily growing, global economy.

Russia’s currency, the ruble, plummeted in value early in 2015 as the low price of crude oil put pressure on an economy targeted by Western sanctions imposed in response to the Kremlin’s position on crises in Ukraine.

“I think the period of adaptation to the sanction regime is over,” the minister said. “We are developing interesting investment projects linked with import substitution, with export support. I think the economy has adapted to the new conditions.”

In December, the World Bank said it expected Russia’s real gross domestic product should contract by 0.7 percent. That forecast was based on oil priced at $78 per barrel.

Ulyukayev said growth for 2016 would be around 2 percent.

The Kremlin said the industrial sector may help offset some of the economic pain, but real disposable income should decline along with investment activity for the midterm.

UPI



3 Comments on "Russian minister: Oil markets stable"

  1. Nony on Mon, 22nd Jun 2015 8:29 am 

    I agree they are stable now. Barring some Persian Gulf war or a massive recession, I don’t see much changing. US LTO is the marginal barrel. Hundred dollar oil is not sustainable as a price, because that starts the party up again and we get 1.5MM bpd yearly increases. We don’t go much below 50 because shale turns off from price and has fast decline. So we live in some in between world at 65, with some shale but not exploding. Market equilibrium. The people who thought US LTO wouldn’t matter on the world stage are looking more and more wrong.

  2. hiruitnguyse on Mon, 22nd Jun 2015 11:48 am 

    A dead man is stable.

  3. Speculawyer on Mon, 22nd Jun 2015 1:51 pm 

    Yeah, the markets are pretty stable right now. Of course with the oil markets, a crazy change can happen at any time. A terrorist attack, an uprising in an oil exporter, reduced imports into China, a nuclear deal with Iran, etc. So at any time there could be a sharp movement . . . up or down.

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