10:50 GMT +307 December 2019
Listen Live
    A worker at an oil field owned by Bashneft, Bashkortostan, Russia

    Russia Hopes Oil Prices to Stabilize at Current Level in 2017 – Putin

    © REUTERS / Sergei Karpukhin
    Russia
    Get short URL
    Putin's 2016 Annual Year-End Press Conference (72)
    0 27
    Subscribe

    The Russian president said that Russia counted upon the stabilization of oil prices in the second half of 2017 at the current level of around 55 US dollars per barrel.

    MOSCOW (Sputnik) — Russia counts upon the stabilization of oil prices in the second half of 2017 at the current level of around 55 US dollars per barrel, Russia’s President Vladimir Putin said during the annual press conference on Friday.

    "We believe that in the second half of 2017 oil excesses will go away from the market, and oil process will stabilize. We count on their stabilization at the current level," Putin said.

    According to Putin, the oil production cut agreement of major oil producers will lead to an increase in oil prices, while the rise of barrel by $10 will allow the Russian budget to receive additional income of 1.75 trillion rubles ($28.6 billion at the current exchange rate) per year.

    "It will be a gradual reduction, which will have almost no impact on the total production volume, for us it is absolutely acceptable. But we expect that this will lead to an increase in oil prices, which has already happened," Putin said.

    "I want to tell you about the effect on the country's budget and for our companies if this state of affairs upholds. The difference in oil prices of $10 will mean additional budget revenue of 1.750 trillion rubles. And for the oil companies, despite the decline in production, the price difference of $10 will give an additional income of 750 billion rubles. Thus, in the end, we all win," Putin said.

    According to Putin, Russia is expecting oil prices to stabilize in the second half of 2017 at the current level of about $55 per barrel.

    Topic:
    Putin's 2016 Annual Year-End Press Conference (72)

    Related:

    Oil Prices Unlikely to Return to $100, $60 Expected in Short-Term - Minister
    Oil Prices Poised to Post Further Gains Amid Bullish Investor Sentiment
    OPEC Oil Output Deal Unlikely to Have Long-Term Influence on Prices
    Tags:
    oil prices, Vladimir Putin, Russia
    Community standardsDiscussion
    Comment via FacebookComment via Sputnik