Russian gov’t considers $45-$55 a barrel oil price range optimum

That may halt the growth of futures and even get them back to USD46 per barrel in the short-term. (File photo: Jeff W/Unsplash)

MOSCOW – Russia’s government considers the oil price range of USD45 to USD55 per barrel optimum in the current market situation, which allows preventing the market from overheating and supporting producers, Deputy Prime Minister Alexander Novak told reporters.

“The range of prices of USD45 to USD55 per barrel is optimum for recovery of our production, which we have let strongly down, otherwise we will never restore production, others will do, whereas we will remain at our level all the time,” Novak said.

The head of the commodity strategy department at Saxo Bank, Ole Hansen, said earlier the price of Brent crude oil might decrease amid reports about a new strain of the coronavirus that may push the infecting rates up and lead to new lockdowns.

That may halt the growth of futures and even get them back to USD46 per barrel in the short-term.

On December 14, Britain’s Secretary of State for Health and Social Care Matt Hancock said British scientists had identified a new coronavirus strain that might be to blame for high infection rates in southeastern England.

On December 19, UK Prime Minister Boris Johnson said according to the current findings, the new strain might be 70 percent more contagious.

However, there is no proof yet of a greater risk of lethal outcome.

The World Health Organization has said the mutated strain has already reached Australia, Denmark, and the Netherlands. (TASS)