The Central Bank admit that oil prices could fall to $40

© RIA Novosti / Maxim to Bogodeeva in fotosannette conventional pumping unit. Archival photoThe Central Bank admit that oil prices could fall to $40© RIA Novosti / Maxim to Bogodeeva the image Bank

The Bank of Russia believes that oil prices in the medium term can with a high probability to return to 40 dollars per barrel, told journalists the first Deputy Chairman of the Central Bank Ksenia Yudaeva.

«Our predictions are based on what we see probable that in the medium term, the price may return to $ 40 per barrel», — said Yudaeva. She noted that the Central Bank will watch the situation in the oil market, which is quite a lot of uncertainty, and how this connection to adjust their forecasts.

During the Vienna meeting, all the parties to the agreement on the reduction of oil production agreed to extend it for nine months — until the end of the first quarter of 2018 on the same terms. The generally positive news disappointed investors counting on more. World oil prices reacted to the news collapse of more than 5%. On Friday a slight correction to plus. As at 17.05 MSK July futures for North sea petroleum mix of Brent rose in price on 0,47% — to 51,70 dollars per barrel, WTI — on 0,53%, to 49.16 per barrel.

OPEC agreed on 30 November last year in Vienna to reduce production by 1.2 million barrels per day from October levels to stabilize oil prices. Eleven non-OPEC countries, 10 Dec agreed to reduce its production a total of 558 thousand barrels, including RF — 300 thousand. The agreement was concluded for the first half of 2017 with possibility of extension.

According to Yudayeva, there are two opinions on how the extension of the Vienna of the transaction will affect the oil prices. The Finance Ministry believes that the agreement will only increase excess reserves, and oil can fall in price to 30 dollars per barrel. Energy and also many analysts believe that the agreement will reduce excess oil and help to stabilize the market.

«As the Bank of Russia, especially in terms of risks to financial stability, I don’t think we need to put on some particular point of view. For us from the point of view of financial stability is very important to be ready to have tools in case of implementation of any of the possible scenarios», — said Yudaeva.The Central Bank admit that oil prices could fall to $40© RIA Novosti, Informaticompletion: from exploration to the consumer