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Russia Sticks to Conservative $40 Oil Forecast for 2018 Budget

Bloomberg business news

Analyst Epstein Sees No Bulls, but a Bounce for Oil

The Russian government is sticking to its conservative assumptions for oil prices as it drafts the budget for the next three years, relying mainly on domestic borrowing to finance the deficit in order to preserve its rainy-day funds.

Oil prices are running above the government’s $40-a-barrel forecast, but growing supply from Libya, Nigeria and the U.S. “presents very serious risks,” Economy Minister Maxim Oreshkin said Thursday at a government meeting discussing the outlines of the three-year fiscal plan. “Keeping the level of $40 per barrel in real terms over the next three years looks more than reasonable,” he said.