Russia is Prepared for $30 Oil in 2016 says Finance Official

Russia is planning for oil prices to drop to $30 per barrel in 2016.

The country’s top finance official, Anton Siluanov, said the government must be prepared for prices to fall further in 2016 as the global glut grows and new supply — for example from Iran — enters the market.

“Everything indicates that low oil prices are likely to dominate next year. And it is possible that at some periods [the oil price] will be $30 per barrel,” Siluanov was quoted as saying by Russian state-run news agencies.

That would spell more pain for Russia. Oil and gas exports make up almost half of government revenue.
Oil futures were trading at their lowest level in nearly seven years on Monday, sliding below $35 per barrel.

Russia is planning for oil to trade between $40 and $60 per barrel over the next seven years.

via CNN

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza