Gazprom, the world's biggest natural gas exporter, made an announcement that this year, prices for natural gas at $199 per 1,000 cubic meters, while oil prices per barrel will fluctuate around $50.
While presenting their forecasts in the announcement, Gazprom added that according to more conservative estimations, natural gas prices would be at $151 per 1,000 cubic meters, and oil prices would be $35 per barrel.
Last year in October, Gazprom projected that 2016 would see the lowest price for its fuel in their main European market for more than a decade. The state-run company drafted their budget for 2016 with preliminary estimates for gas prices outside Russian territories of about $200 per 1,000 cubic meters, according two people with direct knowledge of the matter who asked not to be identified because of the private information given, according to Bloomberg news. That compares with the company's estimate of an average price for the region for last year of $238 per 1,000 cubic meters, which covers Turkey and Europe outside of the Baltic states. Gazprom currently supplies about a third of Europe's natural gas, and relies on exports of the fuel for 40 percent of its annual revenue of more than $100 billion.