Oreshkin expects stable oil prices until the end of the first quarter of 2018

© RIA Novosti / Alexei Danceparty in fotomancer economic development of the Russian Federation Maxim Oreshkin. Archival photoOreshkin expects stable oil prices until the end of the first quarter of 2018© RIA Novosti / Alexei Danceparty the image Bank

The Ministry of economic development expects oil prices will be stable until the end of the first quarter of 2018 and will be reduced to 41-42 per barrel by the middle of next year, told journalists the Minister of economic development Maxim Oreshkin, presenting an updated forecast of socio-economic development of the Russian Federation for the years 2017-2020.

«We expect more or less stable oil prices until the end of the first quarter and reduce them to the level of 41-42 dollars by the middle of 2018,» he said.

Until the end of the first quarter of 2018, the agreement OPEC+ on the reduction of oil production. OPEC and a number of not members of the organization countries agreed in late 2016 in Vienna on the reduction of its oil production to total 1.8 million barrels per day from October levels, of which 300 thousand are in Russia. The agreement was concluded for the first half of 2017, and in may extended for another nine months — until the end of March 2018.

Speaking of external conditions. in particular, noted that the Ministry expects the tightening monetary policy of the fed.

«We believe that the market underestimates the trajectory of tightening that will occur… We believe that this factor may be one of the factors that will contribute to a reassessment of the risk level in the global market», — said the Minister.

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