Russia Bank Expects Crude Glut in 2017

Russia Bank Expects Crude Glut in 2017Russia Bank Expects Crude Glut in 2017

The Central Bank of Russia expects the crude glut on the global market to persist till 2017, according to the regulator's report on monetary policy released on Friday.

"The estimates of the supply and demand balance on the global crude market have not changed significantly; the surplus of oil supply is expected to persist till 2017," the report said. CBR has kept its base case forecast of Urals crude oil price by the end of 2016 at the level of $40 per barrel, TASS reported. A possible decision to freeze oil production by the exporting countries will not have a significant effect on the demand and supply balance on the global oil market or oil price, the report said.

"The negotiations on freezing oil production among OPEC countries and some large exporters outside the organization are unlikely to have a lasting effect on market conditions. This would be possible only if the parties have agreed on direct reduction of production in comparison with current levels, but such an outcome is very unlikely," it said.