Falling oil prices not as terrible as depicted, say experts

 

Forecasts of sharp short-term falls in oil prices were voiced by the head of the group of Templeton Emerging Markets funds, Mark Möbius, the other day. "The amplitude can be from $80 to $120 per barrel. But on the whole, we recognize that a barrel of Brent will remain higher than $89," he declared.Experts of Russia, Azerbaijan and Kazakhstan in conversation with a correspondent of Vestnik Kavkaza agreed that the situation doesn't indicate a long-term tendency, and therefore there are no grounds for worrying about the incomes the budgets of the countries receive from oil exports. So, the head of the State Duma Energy Committee, Ivan Grachev, emphasized that a short-term reduction in prices will shortly be overcome by the risks which have grown recently.Also, according to the expert, the state has enough reserves today to coordinate the situation. "If we compare it with 2008-2009, the time of the financial crisis, which then became the reason for the sharp fall in oil prices, six years ago Azerbaijan, due to assignment from reserves, managed to maintain the manat at its present level and no serious cataclysms occured.

 

Forecasts of sharp short-term falls in oil prices were voiced by the head of the group of Templeton Emerging Markets funds, Mark Möbius, the other day. "The amplitude can be from $80 to $120 per barrel. But on the whole, we recognize that a barrel of Brent will remain higher than $89," he declared.

 

Experts of Russia, Azerbaijan and Kazakhstan in conversation with a correspondent of Vestnik Kavkaza agreed that the situation doesn't indicate a long-term tendency, and therefore there are no grounds for worrying about the incomes the budgets of the countries receive from oil exports. So, the head of the State Duma Energy Committee, Ivan Grachev, emphasized that a short-term reduction in prices will shortly be overcome by the risks which have grown recently.

 

Also, according to the expert, the state has enough reserves today to coordinate the situation. "If we compare it with 2008-2009, the time of the financial crisis, which then became the reason for the sharp fall in oil prices, six years ago Azerbaijan, due to assignment from reserves, managed to maintain the manat at its present level and no serious cataclysms occured.