Russia will be satisfied if oil falls in price even up to $40

The Russian Federation will not experience serious pressure on the domestic economy and the financial market if world oil prices fall to $40 per barrel.

This statement was made by the Head of the Ministry of Economic Development of the Russian Federation.

“The Saudis and we changed places in the oil market: they need $70 per barrel, and $40 will suit us. Although, of course, $60 is the optimal price”, Russian Minister of Economic Development Maxim Oreshkin in an interview with TASS, RBC reports.

According to him, $60 per barrel is the level at which you can safely invest in new projects and engage in their development. But even if prices fall to $40 per barrel, Russia will not experience serious pressure on the domestic economy and financial market in terms of balance of payments and budget.

Oreshkin noted that if the global economy faces serious problems, Russia will also suffer. “However, earlier (when in 2014 to maintain the budget and balance of payments the desired oil price was $115 — ed.), we would have been hooked much stronger,” the Russian Minister estimated.

Today, a Brent barrel costs $59. Brent crude on the London ICE Futures exchange by 9:30 (Kyiv) was $59.62 per barrel, dropping below the psychological mark of $60. As a result of trading on August 28, the price of these contracts was $60.49 per barrel. 

 

Source: rbc.ru

Tags: oil

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