Russia sees oil prices averaging $50 to $55 a barrel in 2021 as the development of Covid-19 vaccines spurs an economic recovery, said Energy Minster Alexander Novak. That would be an improvement from this year and enough to cover Russia’s budget, but still well below pre-pandemic levels and too low for many of Moscow’s OPEC+ allies.
“Globally, big work on vaccination is being done” and the global economy is rebounding as countries relax their restrictions, Novak said in a speech at the online Global Manufacturing and Industrialization Summit on Friday. “Demand will be growing” even as uncertainties remain on the oil market, he said.
Brent crude, the international benchmark, has traded near $45 for several months, rebounding from a deep slump after Russia and its allies in the Organization of Petroleum Exporting Countries made historic production cuts.