An oil pump jack is seen at sunset in a field outside Scheibenhard, near Strasbourg, France, October 6, 2017. Picture: Christian Hartmann/Reuters
INTERNATIONAL - The current oil price of around $65-$70 (R785-R845) per barrel fairly reflects the impact of external factors and the situation on the market, Russian Energy Minister Alexander Novak said yesterday. 

“I believe that today’s prices quite fairly reflect the fundamental factors and the situation on the market,” Novak said on the sidelines of World Economic Forum (WEF) in Davos, Switzerland. 

Novak added that the price of $60 per barrel seemed to be a good forecast for 2018, as it was earlier predicted to be $45-55. Oil prices collapsed in mid-2014, falling from above $100 per barrel to under $30 per barrel by early 2016. 

The plunge, caused by a glut in global supplies, prompted oil producers to agree on limiting output in late 2016. The deal has since been extended twice and will now last until the end of 2018. Prices began rebounding in mid-2017. 

The WEF annual meeting is being held from January 23 to January 26 this year, with more than 340 political leaders, including some 70 heads of state and government, attending. The event is aimed at shaping global and industry agenda by the political, business and academic leaders.