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$80-90 per barrel oil price could remain in mid- and long-term — Russian finance minister

According to Anton Siluanov, the budget should be oriented to the new situation with prices for export goods and capital flow

MOSCOW, November 26. /TASS/. The oil price of $80-90 per barrel could remain in the mid- and long term, Russian Finance Minister Anton Siluanov said in the Federation Council, the upper house of Russia’s parliament, on Wednesday.

“Our budget and economic plans should be built proceeding from the new macroeconomic conditions, which, in our view, will not change fast,” Siluanov said. “The new oil price of $80-90 is likely to remain for the mid- and maybe even long term.”

In connection with the changed conditions, he said, the budget should be oriented to the new situation with prices for export goods and capital flow.

“So when planning the budget for new budget cycles, we should start from the oil price forecast. It is probably some $80-90 per barrel,” the minister said. He said the key global oil exporters plan and balance their budgets proceeding from the $75-80 per barrel price, while Russia sets the mark at $100 per barrel.

“So, of course, we will need to rebuild the budget, and this will not be easy. We need to build the budget policy in a different way, optimize expenditures and at least not increase them at such rates,” Siluanov said.

Earlier it was reported that oil prices have dropped by nearly $40 per barrel over the past five months.