Gazprom sees $250 oil next year

DEAUVILLE, France


A spokesman said the company, which is also one of Russia’s largest crude producers, expected the price to hit the $250 (U.S.) a barrel level sometime in 2009.

Gazprom exports gas to Europe at prices linked to oil products. Mr. Miller said the current gas price was $410 per 1,000 cubic metres and Alexander Medvedev, Mr. Miller’s deputy, said prices were likely to rise to reflect the higher cost of crude.

Analysts said that using the $250/barrel forecast and the conversion factors cited by Mr. Medvedev at the presentation, one would arrive at a gas price of $1,500 per 1,000 cubic metres.

“It’s crazy … Maybe they know something we don’t,” said one analyst, who bemoaned the lack of analysis to back up the forecast.

Reuters