HomeMediaLatest NewsIt has fallen below $ 37: a stability for oil prices is not promised

It has fallen below $ 37: a stability for oil prices is not promised

29 October 2020

Salikhov Marcel R. President, Principal Director on Economic Studies, Head of the Economic Department

Marcel Salikhov President of the Institute commented to EurAsia Daily on the short-term dynamics of world oil prices.

President of the Institute for Energy and Finance (FIEF) Marcel Salikhov adds that the market is also subject to the expectations of growth in production in Libya.

“And next week, the main focus will be on the US presidential elections. Biden's victory, apparently, will lead to additional price reductions,” the expert continues.

Marcel Salikhov also believes that short-term factors act on oil and in terms of the market balance, the current decline is short-term. Therefore, the FIEF President expects oil prices to return to a range above $ 45.

Certainly, the current quotes will affect the income of Russian oil companies and the state. By budgetary rule, the cut-off point for this year is $ 42.5 per barrel. Anything above goes to the National Wealth Fund.

However, Marcel Salikhov notes, the current oil prices are unlikely to affect the ruble exchange rate, since the potential for its weakening has been largely exhausted. “Most likely, we will see a dollar more expensive than 80 rubles, but I think it will be a fairly short time,” the FEF President said.

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