Oil price decrease not to greatly affect Kazakhstan’s economy – ministry
Baku, Azerbaijan, Nov. 17
By Elena Kosolapova - Trend:
A decrease in the world oil prices by late 2014 will not have a significant impact on the economy of Kazakhstan, the Kazakh National Economy Ministry told Trend Nov .17.
"It should be stressed that despite the decline in oil prices in October, the average annual oil price for the first nine months of this year amounts to $106.6 dollars / barrel," the ministry said. "In case of further decrease in oil prices up to $ 80 / barrel by late 2014, the average annual price will remain at $ 100 / barrel. The budgeted average annual price of $ 95 / barrel according to the updated forecast of the socio-economic development for 2014-2018 should be taken into account."
However, taking into account the deterioration of the external conditions, the Kazakh government worked out an action plan for the country's economic growth by late 2014, aimed at ensuring the stable economic growth, the ministry said.
Moreover, the work is underway to clarify the socio-economic development forecast for 2015-2019. The current situation on the world commodity markets and the adjusted forecasts of international organizations concerning the world prices on the main export goods will be taken into account.
Taking into account the external factors, the government took the economic development of Kazakhstan with the oil price of $ 80 per barrel in 2015 as the basis. Currently, the Kazakh Parliament is considering the revision of the parameters of the republican budget project for 2015 - 2017.
As for the national currency, the oil price of $80-85 per barrel is not critical for it, the ministry said.
"According to the Kazakh National Bank, the foreign exchange adjustment in February 2014 gives tenge a certain margin of safety," the ministry said.
The National Bank conducted tenge devaluation in February 2014. As a result, the dollar compared to the tenge increased by 19 percent.
The world prices have been recently reduced. December WTI crude oil futures price reduced by 0.8 percent to $75.21 per barrel the morning of November 17. Brent futures price reduced by one percent - up to $78.62 per barrel.
Vienna will host the annual meeting of the OPEC member-states on November 27. The countries will decide whether they will choose a decline in the production amid the worsening forecasts for the oil consumption in the world, a substantial increase in production in the US, as well as significant reduction in oil prices. According to the analysts, if such a decision is made, the oil prices will increase.
edited by CN