MOSCOW (Sputnik) — Global oil prices plunged from $115 to less than $30 per barrel between June 2014 and January 2016, hitting their lowest levels since 2003 amid an ongoing glut in global oil supply.
"At the moment, the forecast's basic version assumes that the price of oil will stand at $40 per barrel of Urals brand oil. I will add that there is another plan in case of a much more pessimistic scenario — a conservative version of the prognosis that suggests a price of $25 per barrel," Medvedev said.
On April 17, the world's major oil-producing countries, including both Organization of the Petroleum Exporting Countries (OPEC) members and non-cartel states, failed to reach an agreement in the Qatari capital of Doha to maintain output at current levels. Saudi Arabia cited Iran’s absence from the talks as the reason it could not support an output freeze.
The news instantly triggered a sharp drop of about 4 percent in oil price.
Prime Minister Dmitry Medvedev also added that Russian economic growth will stand at around zero in 2016, but will increase to around one to two percent in 2017-2019.
"In the basic version [of the government's macroeconomic forecast], GDP growth this year will remain at around zero or be slightly negative. A slight growth of one to two percent is expected in 2017-2019," Medvedev said at a government meeting.
