Oil Market Amid Low Prices

Russian Economic Developments. Moscow, 2015, #11, pp. 38-40

3 Pages Posted: 10 Dec 2015

See all articles by Yuri Bobylev

Yuri Bobylev

Gaidar Institute for Economic Policy; Russian Presidential Academy of National Economy and Public Administration

Date Written: December 8, 2015

Abstract

Global oil marker is characterized by low oil prices resulting from an excessive supply over demand. Under the effect of low prices oil production on cost-intensive oilfields began falling, drastically decreased investments in the development of unconventional petroleum deposits including shale oil in the US. Over recent months, it is observed that the oil production is shrinking in the United States. Contraction of cost-intensive crude production creates preconditions for a reduction of excessive oil supply and consequently oil price hike. However, risks remain emanating from the OPEC member states who strive to increase their market share. Presently, reduction of oil production on the cost-intensive oilfields is counterbalanced by the production growth in the OPEC. Russian oil sector demonstrates positive dynamics and rather high investment activity which allows to reckon on preserving gains achieved in the oil production in the near-term.

Keywords: Russian economy, oil price, crude production

JEL Classification: L71, L72

Suggested Citation

Bobylev, Yuri, Oil Market Amid Low Prices (December 8, 2015). Russian Economic Developments. Moscow, 2015, #11, pp. 38-40. Available at SSRN: https://ssrn.com/abstract=2700834 or http://dx.doi.org/10.2139/ssrn.2700834

Yuri Bobylev (Contact Author)

Gaidar Institute for Economic Policy ( email )

Gazetny pereulok, 3-5
Moscow, 125993
Russia

Russian Presidential Academy of National Economy and Public Administration ( email )

Vernadsky Avenue 82
119571
Russia

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