Russia’s Economy Minister: Russia Can Live Forever At $40 Oil

1 Jun 2017   Russia

The OPEC/non-OPEC deal is working, and the current underlying key assumption of Russia’s economic policies—oil prices at US$40—can allow it to live forever at that price or below, Russia’s Economy Minister Maxim Oreshkin told Bloomberg in an interview on the sidelines of the St. Petersburg International Economic Forum on Thursday. OPEC and Russia are already achieving what they intended to achieve with the deal—a decline in crude oil inventory levels around the globe, the minister said. Arguing that OPEC “has not failed at all” in its attempt to drive oil prices up, Oreshkin said that the price of oil is now much higher than it was this time last year, before the cartel and 11 non-OPEC producers led by Russia struck the initial output cut deal. “We are targeting tighter short-term end of the curve,” the minister said, noting that hedge funds are currently taking risks with medium-term prices […]

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