"The average price for oil next year could be about $74 per barrel," said Andrei Klepach, head of macroeconomic forecasts at the Economic Development and Trade Ministry.
Klepach said the average crude price forecast by the ministry for 2007 was $65-$67, but the actual price could reach $69 per barrel by the end of the year.
Klepach said the domestic economy was becoming increasingly sensitive to oil prices and the dynamics of capital inflow/outflow. "The stability of the payment balance depends on oil prices to a larger extent than before. It also has more dependence on capital inflow."
Russia's economy is now growing at maximum capacity, boosted by high global energy prices and a strong inflow of foreign capital, the World Bank said in a report published on Monday.
According to the report, Russia's GDP is expected to rise to more than 7% in 2007 compared with 6.7% in 2006, driven by growing household consumption and an increase in business activity.
Russia's Finance Ministry earlier said net capital inflow into Russia in 2007 would reach $80 billion, a twofold increase on last year.
