For now $80 p/b is believable prognosis for next year

1 december 2014 | Rossiyskaya Gazeta

Euro and dollar exchange rates set new records. The reason for that is in fall in oil prices as Brent crude oil on Monday for the first time in 5 years dropped below $68 p/b.

Alexander Kurdin
Alexander Kurdin
Department for Fuel and Energy Sector

"The market goes on digesting OPECs decisions on keeping quota on oil output. There was hope that OPEC if not reduce extraction for prices backing then at least form align position in case of contraction in business conditions. But the cartel declamations stayed the same - the market would regulate everything itself. For now the market is just discouraged but dealers make use of it", commented on the situation to "Rossiyskaya Gazeta" the Head of the Department for Strategic Studies in Energy of the Analytical Center Alexander Kurdin.

Oil prices may fall down to $60 p/b and remain in this mode for several months, according to the expert. If future prices fall occurs, an extra (before June) OPEC meeting will take place and limits on extraction reduction will happen, Mr. Kurdin noted. "For now $80 p/b is a believable prognosis for the next year. In 2015 the price on "black gold" will harden, but $100 index by year which is designed in the budget project will not be gained", said the expert.