The US presidential election results and the OPEC oil output cut deal increase the possibility of the Russian Central Bank's best-case scenario with gradual oil price increase up to $55 per barrel (PBL) in 2019, the head of the bank Elvira Nabiullina said Friday.
MOSCOW (Sputnik) — The Central Bank's baseline scenario presumes that the oil price will remain at $40 per barrel in 2017-2019.
"The events on the international markets [such as US presidential election, OPEC deal] increase the likelihood of the scenario with a higher level of oil prices, especially in the short term. But our medium-term outlook in key aspects remain the same," Nabiullina said at press conference.
On Saturday, OPEC and non-OPEC countries struck a historic deal for the latter to reduce oil output by around 600,000 barrels per day in the wake of the cartel’s November's agreement to cut production by 1.2 million barrels per day. The summary cut amounts to some 1.8 million barrels per day in the first half of 2017.
Oil market turbulence caused oil prices to plunge from $115 per barrel in June 2014 to less than $30 per barrel in January 2016, causing hardship for oil exporters and placing a number of global oil producers at risk of bankruptcy. Since then, prices have slightly increased and currently stand at $45-50 per barrel.