Alexander Novak in an interview with Bloomberg called comfortable the price of oil. According to the head of the Ministry of energy, the budget was formed at a price of $42 per barrel Urals.
Comfortable with the price indicated in the forecast of socio-economic development up to 2035 is $50 per barrel.
According to Novak, the high prices reduce the demand for energy, which leads to the formation of a new crisis. The increase in actual prices over that that budget allows to transfer money in the reserve Fund, the Minister noted.
In April, OPEC+ unable to agree on a comprehensive oil production decline in may and June to 9.7 million barrels per day. 9 more countries outside OPEC+ announced plans to reduce production to maintain a transaction — by 3.6 million barrels per day.
Earlier, the Ministry of energy of Saudi Arabia has instructed Saudi Aramco to reduce the oil production in June by another 1 million barrels per day in addition to the reductions agreed under the deal, OPEC+. Then the deal was extended for another month.
In early June, the price of European and Russian standards of oil exceeded $43. This price is sufficient to start filling the national welfare Fund according to the budget rule. While the Ministry of Finance through the Central Bank sells currency from the Fund to replenish the budget due to the drop-down of oil and gas revenues after a nearly two-fold reduction in the price of oil, in March-April.
Alexander Novak today during a video conference of the World energy Council and the Fund Recongress “COVID-19: to Accelerate the transition to the energy future for all” stated that the share of oil in global energy balance will decrease: this will affect and impact the pandemic, and the growing competitiveness of renewable energy sources. The stream conducted to the channel “Russia 24”.
because of the new coronavirus the inhabitants of the planet in the near future will reduce car trips and traveling by air: “the recovery is not so fast.”
According the Minister said that earlier it was planned to 2040, the reduction in the share of hydrocarbon energy by 10% for 20 years. But the forecasts are to be revised, the rate of decline will increase “and this proportion will be much less,” said Novak.
