Report: Official says oil prices to recover to $40–45 Jul–Dec

MOSCOW, Mar 12 (PRIME) – The oil prices, dropping after a breakdown of the OPEC plus agreement, will return to the level of U.S. $40–45 per barrel in July–December 2020 and to $45–50 per barrel in 2021, Reuters reported late Wednesday, citing Russian Deputy Energy Minister Pavel Sorokin.

“Provided there are no further shocks, Sorokin said he saw prices rising to $40-45 per barrel in the second half of this year and to $45-50 - in 2021,” Reuters reported.

Sorokin said that Russia can boost production by 10 million tonnes in 2020, if OPEC makes no decisions.

Russia’s prime cost of oil production is $9–20 per barrel, and it sees the price range of $45–55 as fair. “The deputy minister sees oil market equilibrium at $45-55 per barrel, which is comfortable for producers and low enough for the global economy to recover from the coronavirus impact.”

The growth of demand may be zero in 2020 due to coronavirus.

The official said he saw it wrong to cut the oil production additionally in a situation of falling demand when its low point is unclear.

Sorokin also said that the Russian Energy Ministry does not rule out joint projects with OPEC in the future.

End