Falling global oil prices caused the price of Russia’s flagship oil, Urals, to drop to $50 per barrel. About this informs Bloomberg.
Falling oil prices are putting additional pressure on Russia’s public finances, making it difficult for the Kremlin to increase spending on the war against Ukraine.
According to Argus Media, on April 7, the price of Urals from the Baltic port of Primorsk fell to $50.76 per barrel. Since the start of the full-scale invasion more than three years ago, Russian crude has consistently sold at a significant discount to the benchmark Brent.
In March, the Ministry of Finance of the Russian Federation said that it now expects the average oil price in 2025 to be closer to $60, although the state budget had set $70 per barrel. If this scenario is implemented, the budget deficit is predicted to increase, however, by no more than 1% of GDP.
The global drop in prices is linked to the introduction of large-scale trade tariffs, which the US announced last week against its foreign economic partners, which caused a deterioration in forecasts for the demand for energy carriers in the world. Additionally, the market was influenced by the announcement of the OPEC+ member countries to increase production from next month, as well as the decision of Saudi Arabia to reduce the price of its oil.
