The US Department of Energy predict a rise in world oil prices during the year and business
NEW YORK, January 29. / Correspondent. Igor Borisenko TASS /. The global oil market proposal still exceeds demand by about 1.5 million barrels per day, but this figure is gradually reduced, leading to an increase in the future price of oil. Such an evaluation was expressed on Thursday at a conference at the Center for Global Energy Policy at Columbia University Seminsky Adam, the head of the Energy Information Administration US Department of Energy. According to him, it can be expected that "within a year" there will balance the supply and demand in the world oil market. See also the opportunity to reduce oil production by 5% there, but it will be difficult to agree on the situation in the market, he said, is now influenced by several factors, in particular, the cost of production of shale oil in the United States. According to him, American companies engaged in the extraction of shale oil, "can survive only at a price not less than $ 50 per barrel," and at current prices, about $ 30 per barrel, oil production in the US decreased by 1-2% per month. Only in the event that the price will rise to $ 50-75 per barrel, he said, the company will begin drilling new wells. According to the forecast, Adnan Shihab-Eldin, Director General of the Kuwait Fund for the development of science, we can expect that the price of a barrel of oil for the foreseeable future, will reach $ 50, and possibly $ 70. However, he stressed that the low oil prices at the energy-importing countries have no incentive to ensure that the switch from oil to other fuels, particularly coal. On Thursday, the First Deputy Energy Minister Alexey Teksler said that the price of oil at $ 20 per barrel in the long term will not stand anybody. He noted that in the first place due to the fall in oil prices affected the budget, since 75-80% of the cost of oil in Western Siberia were seized in the budget at the same price of oil. At $ 20 per barrel revenues will decline so that in the long term at this price can be taken some difficult decisions in terms of budget. We all hope that this will not happen Alexey Teksler First Deputy Energy Minister Novak statement and the response of the oil market on Thursday, Russian Energy Minister Alexander Novak said that he is ready to personally take part in the upcoming meeting in February, OPEC and other oil producers. According to him, the subject of upcoming consultations may be reducing production to 5% each of the countries. Following the announcement, the price of futures for Brent crude for delivery in March 2016 on the ICE exchange in London rose by 5.7% to $ 35.01 a barrel, surpassing the mark of $ 35 for the first time since January 6 of this year. After the oil has strengthened the ruble. From peak to collapse: the price of oil c 2000

More on TASS: