Oil is falling

But Russian ministers are not worried

Commenting on the sharp fall in Brent oil prices below $65 per barrel on November 13, Energy Minister Alexander Novak said that it would be “not entirely right” to react sharply to the “basic fluctuations” of the market in any way. According to the minister, the oil market is “quite volatile”, since hydrocarbons have been growing just as actively recently. Novak noted that one should look at average prices for the year, which are about $70 per barrel, RBC reports citing Novak's interview with Interfax .

The head of the Ministry of Economic Development, Maxim Oreshkin, notes that, despite the fluctuations that add “nervousness for the markets”, the overall situation is more stable than in 2014.

According to Novak, the oil market is volatile due to many uncertainties. In particular, this concerns plans for production levels in December.

“We need to look in detail at the fundamental factors that will be formed according to the balance of supply and demand. The dollar exchange rate against other world currencies also affects,” the minister explained.

The situation with production levels is connected with the continuation of the economic downturn in oil exporting countries, for example, in Venezuela and Mexico. In addition, there are uncertainties about Iran, against which US sanctions were imposed. In the event of a serious crisis, Russia has response tools, the head of the Ministry of Energy said, but so far there is no need to use them.

On the evening of November 13, oil prices fell by almost 7% to $4.65, trading in January futures for Brent closed at $65.47 per barrel. December futures for American WTI oil also fell by $4.24, to $55.69 per barrel. Relative to the high of early October - $ 86.29 - the price of Brent has fallen by 25%.