Alexander Novak predicts oil reaching $80

Maria Novoselova / Vestnik Kavkaza

Russian Deputy Prime Minister Alexander Novak said he expected Brent to be above $80 a barrel by the end of the year.

Commenting on energy markets, the deputy PM said that Brent crude oil price will exceed $80 per barrel by the end of the year, adding that the average price of Brent oil for the past six months has been about $80 per barrel.

"It is hard to predict. I think that the price will be slightly higher than $80 per barrel, and I hope that demand will still grow in summer," Novak said.

He noted that current prices of $75-76 are due to the market’s assessment of the global macroeconomic situation.

"We see very high central banks’ refinancing rates: I think above 5% in the US, 3.75% in Europe, which is pushing the investment activity and consumption down, meaning risks of lower demand," Novak explained. 

Meanwhile the price of Brent roughly amounted to $80 per barrel on average over the past half a year, hovering in the range of $72-87 per barrel.

© Photo :Maria Novoselova / Vestnik Kavkaza