Oil prices are helping Kazakhstan's economy. This was stated by the head of KazMunayGas, Askhat Khasenov. This was reported by Qazaqyia.kz citing Sputnik Kazakhstan.
A day earlier, the price of a barrel of Brent crude fell below $102 for the first time since October 8. On the evening of November 3, January futures for Brent crude fell by 3.09% compared to the closing price of the previous trading session, to $101.53 per barrel. December futures for WTI crude fell by 2.33% to $94.23 per barrel.
"Of course, oil prices are helping us, we don't deny it. Now the cost of transporting oil, that is, freight rates, has increased. We must take into account not only the price of oil but also the costs of delivering it by sea. Today, logistics companies are earning no less than KazMunayGas. In general, we deduct all these costs. That is, when selling oil, all expenses are taken into account," Khasenov said.
He also touched upon KazMunayGas's oil reserves. Currently, the company's reserves amount to 785 million tons.
"To replenish the resource base, additional exploration work is constantly being carried out. To put it simply, if KazMunayGas's reserves are 800 million tons and annual oil production is 26 million tons, calculate it yourself – that's about 45 years. But this does not mean that oil reserves will be depleted after 45 years. The resource base is constantly being replenished. We drill wells and immediately account for discovered reserves," Khasenov said.
In addition, investors believe that a decrease in potential tensions in the Middle East could reduce the risk of disruptions to oil supplies. The market is also awaiting the final results of the US midterm elections.