Report: Russian minister sees fair oil price at $40–50 per barrel

KHABAROVSK, Jan 18 (PRIME) -- The fair oil price is U.S. $40–50 and the oil market will find the new balance in 12–18 months, Russian Energy Minister Alexander Novak told channel Rossiya 1 in an interview broadcast January 17.

“As regards the prices, it is hard to forecast when they will start the recovery. If we talk about fair prices, I think, and many analysts talk about this, the benchmark, the price margin is the prime cost of shale oil production…The prime cost ranges between $20 and $60. On average, I can say, $40–50 is a price which in case of recovery could hold the supply–demand balance,” Novak said.

He said that the demand now stands at 1.5 million barrels a day and the supply amounts to 1.9 million barrels daily.

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