ST. PETERSBURG, July 27. /TASS/. The current oil price does not correspond to the balance of supply and demand, oil is currently undervalued, Russian Energy Minister Nikolay Shulginov said in an interview with TASS ahead of the Russia-Africa summit.

"The average price of Brent in the first half of the year is $79.7. However, oil is fundamentally undervalued - the current price level does not directly correspond to the balance of supply and demand in the market, but largely depends on speculative factors," he said.

According to the minister, Russian oil is competitive at almost any level of market prices.

"Russian oil remains in demand, it is competitive at almost any level of market prices, and as import substitution accelerates, the efficiency of oil field development will grow," Shulginov said.

The second Russia-Africa summit, as well as an economic and humanitarian forum organized by the Roscongress Foundation, are scheduled to be held in St. Petersburg from July 27 through 28. Like the first summit, the event will be held under the motto "For Peace, Security, and Development." TASS is the event’s official photo hosting agency and information partner, as well as the host of the second Russia-Africa media forum.