Updated 10:02 p.m. Moscow Time
MILAN, October 17 (RIA Novosti) – Russian President Vladimir Putin said Friday that world economy will collapse if oil prices remain at $80 per barrel.
Shale oil production in the United States is profitable at a price of $80 per barrel, according to Putin.
“If oil prices remain at $80 per barrel, it will lead to production collapse. Budgets of all major oil-producing countries are based on the price of little more than $80, close to $90 per barrel…” the Russia leader told reporters after the Asia-Europe Meeting (ASEM) summit in Milan.
Crude oil prices have been in decline since mid-June and have lost over 28 percent of their value since that time. Oil prices started dropping on October 10 after OPEC published its October report which indicates increases in oil production in OPEC-member countries. Gulf nations plan to oppose any cut to OPEC’s oil-production ceiling at next month’s meeting, according to experts.