VEB exec says oil price may fall to $60/bbl in 2019

MOSCOW, Nov 13 (PRIME) -- The oil price may fall below the consensus forecasts to U.S. $60 per barrel in 2019, while a decrease to $40 per barrel is unlikely, Andrei Klepach, chief economist at state-owned Vnesheconombank (VEB), said at a conference Tuesday.

“The majority of consensus forecasts focuses on a slight decrease in 2019. We, my colleagues, believe that this decrease may be more significant. If the price of oil moves somewhere, it moves more than everyone expects. Therefore, a reduction to $60 (per barrel) is quite likely, and it is sensitive,” he said.

The oil price reduction remains the most serious real risk for the Russian economy although it slightly reduced its dependence on this parameter, Klepach said.

He also said that a tough round of sanctions is unlikely in the near future.

“I do not want to be too optimistic here, but the basic scenario is that there will not be any round of sanctions either now or next year,” he said.

End