The Russian oil and gas industry sees prices remaining stable at ~$60-$65 per barrel
During the St. Petersburg International Economic Forum, Lukoil (ticker: LKOH) CEO Vagit Alekperov said that he expects oil prices to remain relatively stable moving forward. When asked where he saw oil prices going by the end of 2015 he said, “I think it will range from $60 to $65 [per barrel],” reports Russian news agency TASS.
His comments echoed those of Russian President Vladimir Putin, who said “It is now clear how the hydrocarbon market will develop. If nothing out of the ordinary happens, it will continue to exist in the similar price niche, I think, for the next year or two.”
Source: Gazprom Gazprom Neft CEO Alexander Dyukov
Putin went on to say that the federal budget and real sector economy, or the sector of the economy concerned with actually producing goods and services, have now adjusted to oil and gas prices, which makes up approximately 30% of Russia’s GDP. “It suits us for now,” he said about the current price environment.
Alexander Dyukov, CEO of Gazprom Neft (ticker: GZPFY), Russian state-owned oil giant Gazprom’s (ticker: OGZPY) oil arm, said he sees oil trending up to $75 in the medium-term, and return to previous highs in the long-term, reports TASS.
Dyukov commented that $75 per barrel will allow for investment for supporting necessary output levels, and that $60 to $65 per barrel “does not scare oil companies.”
At the time of this posting, Brent crude August contracts were trading at about $64.50.
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