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Russia's economy minister admits oil price can go down in the short run

Oil prices on the spot market are currently at April level

SINGAPORE, November 14. /TASS/. Oil prices can go even lower in the short run, though they will remain at a higher level in the longer term, Russia’s Economic Development Minister Maksim Oreshkin said on the sidelines of the Russia - ASEAN forum on Wednesday.

"Of course, the volatility can remain, theoretically oil prices can go even lower, however, the key signal is that the mid-term and long-term forwards are stable and higher than they were half a year ago," he said.

Oil prices on the spot market are currently at April level, whereas forward prices of oil were below $5-10 at that time, Oreshkin emphasized.

"The deficit on the oil market that we evidenced at the beginning of the year is gone, and a slight surplus is being formed. That is why the forward curve is changing as short prices are plunging, whereas a long part of the curve is very stable amid uncertainty over long-term supplies from Iran and a number of other long-term structural problems in the oil sector, underinvestment of the past several years," he explained.