Russia sees fair oil price at $45–55 per barrel

MOSCOW, Mar 27 (PRIME) -- The fair oil price that guarantees normal operations of the global oil market stands at U.S. $45.55 per barrel, Deputy Energy Minister Pavel Sorokin said during an online discussion of the Valdai Club.

“As we see it, the fair price that would allow the market to operate in a normal way is in the range of $45–55 per barrel,” he said.

This price would stop expensive projects that are unnecessary, but would allow the market to grow sustainably and be balanced. The price would stay within the range but for the coronavirus pandemic, he said.

The coronavirus slashed about $25 off the price.

“If we take the starting point of $60 and the current price of about $26–27, then somewhere around $25 of this contraction is the impact of the coronavirus,” he said.

If OPEC and non-OPEC states had agreed to prolong their oil output reduction deal with a deeper cut, the price would only be higher by $5–7 than what we have now, he said.

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