MOSCOW--Russia's finance ministry on Thursday said it now looks
like a "moderately optimistic scenario" for oil prices to stay
around $80 a barrel, following the decision by the Organization of
the Petroleum Exporting Countries to leave oil production
unchanged.
"In the past several days we have observed that an absence of
determination to limit volumes of extraction by OPEC has led to a
further negative pressure on oil prices. The market remains in a
condition of oversupply and the current [OPEC] decision means that
the issue won't be solved quickly," said Maxim Oreshkin, head of
strategic planning department at the finance ministry.
Mr. Oreshkin, responsible for long-term budget planning, said
Russia will need to adopt to new oil prices. The sharp falls in the
price of oil poses a challenge for Russia, which based its budget
for 2015 at an average oil price of $100 per barrel.
The finance ministry said earlier this week that if oil prices
remain at their current low level and Russia's economy fails to
pick up, budget revenue may fall short by a trillion rubles ($21
billion) next year.
Russia is the world's third-largest oil producer and its economy
is heavily dependent on oil exports, with the sale of hydrocarbons
accounting for about a half of its annual budget revenue.
Write to Andrey Ostroukh at andrey.ostroukh@wsj.com
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