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 Oil prices may fall to $25 a barrel, - Russian Deputy Prime Minister

Deputy Prime Minister Arkadiy Dvorkovich does not rule out a short-term drop in oil prices to $25 per barrel.

He stated this in an interview with vestifinance.ru, Сensor.NET reports.

According to him, the current decline in oil prices will lead to reduction of investment in production, resulting in a price growth.

"Unfortunately, there is a big game going on," Dvorkovich explained.

Read more: Saudi Arabia killing Russian economy in its campaign to control oil prices, - Business Insider

In turn, Minister of Energy Alexander Novak said that "Saudi Arabia has increased its production by 1.5 million barrels per day this year, thereby destabilizing the situation on the market."

Brent reached its 11-year low last Tuesday, dropping below $36 a barrel. Now it is being traded a bit above $37 a barrel.

"I believe this can not continue for too long," the deputy prime minister said.

"For a number of months, for some time any producing country can sustain such low prices. But then, investment will go down, production will fall, and prices will grow," Dvorkovich said.
 
 
 
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