Average 2016 Oil Price Likely to Be $42 Per Barrel

© AFP 2023 / STRA picture shows an oil facility in the Khark Island, on the shore of the Gulf, on February 23, 2016
A picture shows an oil facility in the Khark Island, on the shore of the Gulf, on February 23, 2016 - Sputnik International
The average yearly price for oil should come to around $42 per barrel in 2016, Russian Economic Development Minister Alexei Ulyukayev said Friday.

MOSCOW (Sputnik) — Currently, Russia's Urals crude benchmark is not traded on stock exchanges, and is mainly priced by market information agencies, such as Platts, based on the Brent-Urals differential.

Section of the BP ETAP (Eastern Trough Area Project) oil platform in the North Sea, around 100 miles east of Aberdeen, Scotland. (File) - Sputnik International
BP Executive Director Expects Oil Prices to Stand at $50 Per Barrel in 2016

"If the current price in maintained, which is now $48 [per barrel] for Brent and $45 [per barrel] for Urals, then we will have $42 per barrel by the end of the year," Ulyukayev told the Russian RBC TV channel.

The $42 average price is expected due to the low probability of further reductions in oil prices, the minister added.

"We, along with all the experts, think that a further fall in prices in unlikely. Well, it might, of course, happen temporarily, but it will not continue like that for three years."

A worker of RN-Purneftegaz, a daughter company of Rosneft, is seen here at the boosting compressor station of the Kharampur gas field, Yamal Nenets Autonomous Area - Sputnik International
Russia's Rosneft Privatization to Yield Some $10Bln - Economy Minister

Global oversupply and stagnating demand have caused oil prices to plunge from $115 per barrel in June 2014 to less than $30 per barrel in January 2016. Prices recovered amid Nigerian, Canadian and Venezuelan output outages and growing demand in May, reaching a peak of over $50 per barrel in early June. Crude prices are currently fluctuating between $40-50 per barrel.

On Friday, the Brent benchmark rallied almost 3 percent, reaching $46.70 per barrel in afternoon trading. WTI crude rallied 2.6 percent, reaching $44.28 per barrel.

To participate in the discussion
log in or register
Заголовок открываемого материала