Russian ex-fin min says oil price may fall to $30/bbl in few years

MOSCOW, Sep 23 (PRIME) -- The oil price can fall to U.S. $30 per barrel over the next few years and can decrease further over a 20-year period, Alexei Kudrin, former finance minister and current head of the Center for Strategic Research, said at a forum Friday.

“After the oil price has fallen, the budget deficit will be 3.7% (of gross domestic product) this year or maybe 3.9% under the latest estimates. We should decrease it by at least 1 percentage points next year. This is still very high for our country with remaining dependence on oil,” Kudrin said.

“And if the oil price will be not $40 (per barrel), but $30? Which in theory can happen not this and not next year, but within several years. By the way, I predict that the price can be even lower during 20 years, it can fall to stable $30 or even smaller levels due to global processes in this sphere and supply, which appears, taking into account the Chinese crisis and other challenges. We should be ready for it,” he said.

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