Russia’s Finance Ministry expects that the oil price will drop to $40 per barrel.Shutter Stock/Legion Media
Russia’s Finance Ministry expects that the oil price will drop to $40 per barrel after the oil production reduction agreement between OPEC and non-OPEC oil producers expires, Deputy Finance Minister Vladimir Kolychev told TASS.
"It is logical to expect that the equilibrium oil price is still lower than the current one. Once the deal is implemented, the price will actually approach it. We think that it will be around $40 per barrel, "the deputy minister said.
According to him, the reduction of the price to such a level will happen after the expiration of the agreement, in the first quarter of 2018.
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