Russia’s VTB Capital forecasts ruble at 61–62/US dollar in 2017

MOSCOW, Dec 15 (PRIME) -- The Russian ruble is to be traded at 61–62 per U.S. dollar in 2017 and the price of the Urals oil blend must in this case be U.S. $52 per barrel, Chief Economist for Russia and the CIS of investment bank VTB Capital Alexander Isakov told reporters on Thursday.

“If oil is significantly lower than $40, the ruble will turn out to be 67–68. And with the Urals oil at $70, our fair ruble rate estimate is 50–52,” Isakov said.

Brent is expected to cost $54–55 in 2017 and may also rise to $60 per barrel and stay there. A possible oil output growth in the U.S. can hurt the price, and in this case the oil price can fall in July–December.

VTB Capital expects that the Russian central bank will reduce the key rate by 1.5 percentage points in 2017, he said separately.

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