$50 is most optimal oil price for Kazakhstan – expert
“Presently, oil price in Kazakhstan makes around $20 per barrel. When this price rose to $27 per barrel, we began to worry about what to expect further. As per our forecast, the most optimal oil price is $50, although the government budgets it at $45-50,” A.Satybaldin said at the International Scientific and Research Conference on “Kazakhstan Economy in Independence Period: Problems, Prospects and Development Priorities.”
The conference is devoted to the 25th anniversary of the country’s independence.
For instance, the cheapest oil price is recorded in Iran ($7 or $8 per barrel), in Russia ($17-18 per barrel) and shale oil price makes $35.
“Therefore, oil-producing countries began to worry when oil price plunged to less than $30. For example, Saudi Arabia spent $150-180bln from its gold and currency reserves in half a year that makes 30% of their total reserves. They were interested in reducing oil output and increasing its price,” he said.
According to him, it is difficult now to predict oil production cost at Kashagan, while the price of oil from Tengiz hovers around $20 per barrel. 