Kazakhstan cuts oil price forecast as crisis bites

ASTANA (Reuters) – Kazakhstan slashed its 2009 oil price forecast by a third to $40 on Monday, bracing itself for more economic pain as the global financial crisis continued to take its toll on Central Asia’s biggest oil producer.

Kazakhstan has announced a $21 billion rescue package — equivalent to roughly 20 percent of the economy — to help its fledging banking sector survive the crisis but falling crude prices have threatened to erode some of these efforts.


Prime Minister Karim Masimov, addressing a cabinet meeting on Monday, warned that the good times were coming to an end.

“Today we have to forget about a period when oil prices were so high. Today we are entering a new cycle,” he said.

“I’ve ordered the economy ministry to recalculate the 2009-2011 budget setting a price of $40 for 2009, and $50 for 2010-2011,” he said. This year’s price is set at $60.

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