Russia Was Prepared for Endangered Oil Prices

It was reported that Alexei Ulyukayev, Russian Minister of Economic Affairs, said on Friday that Russia as a global major oil producer would have to be prepared for the decrease of crude oil prices-----they would reduce the prices predication. Before that, OPEC’s decision not to cut production caused oil prices sharply decline.
The continuously falling of crude oil prices would further hinder the economic growth in Russia, because about fifty percent annual income of Russian government came from oil and gas exports.
Ulyukayev also declared that Russian Economy Ministry would lower the price anticipation. Russia had initially predicted that the Urals crude oil price, which was generally lower than Brent oil, would be 100 dollars each barrel.
In addition, Russia news agency reported that Vladimir Putin had announced, that OPEC’s decision to keep initial oil production was really what they wanted, and he was convinced that oil market would be smooth in this winter.
When meeting with Patrick Pouyanne, CEO of the France Oil Company Total, Putin said, “I believe that the oil market will return to balance the first quarter next year”. He also asserted that he had forecast the falling of oil prices after the OPEC meeting, and Russia hasn’t done anything special to keep the prices.
November 27th, OPEC decided to maintain the daily production of 30 million barrels of crude oil, which made the Brent crude oil prices down to $72/barrel for the first time since the middle of 2010. It was thought that at present the daily production was one million barrels more than actually being needed in the market.

Russia Was Prepared for Endangered Oil Prices
Sep 23,2016
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