Posted on 04/10/2025 8:11:29 AM PDT by marcusmaximus
-snip-
Urals crude, Russia’s main export blend, has plunged this week to its lowest level since 2023, at about $52 per barrel — roughly 30 percent below the $70 benchmark used in Russia’s 2025 budget planning. The slide followed a sharp drop in international oil markets after Trump’s tariffs on China took effect and after a surprise OPEC+ decision to increase production.
Oil exports make up about 30 percent of the country’s budget revenue and have been key in propping up Russia’s war machine three years into the full-scale invasion of Ukraine. The decline in prices is edging close to a risk scenario outlined by the Russian Central Bank for 2025 — that the country could face a prolonged period of low oil prices leading to severe budget constraints.
“The main channel of influence [on us] may be through lowered oil prices. Because if such tariff wars — and we see an escalation of tariff wars — continue further, it usually leads to a decrease in world trade, the world economy and perhaps demand for our energy. So there are risks here,” central bank chief Elvira Nabiullina told Russian lawmakers Tuesday.
President Vladimir Putin’s spokesperson, Dmitry Peskov, described the situation as “extremely turbulent, tense and emotionally overloaded” in a briefing this week, adding that finance officials in Moscow are working “to minimize the consequences of the international economic crisis for our economy.”
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Trump’s tariffs were implemented at a time when Russia’s oil and gas revenues were already falling — down 17 percent year-over-year in March — and the economy has shown signs of stress.
(Excerpt) Read more at msn.com ...
“Could” or will?
The OPEC+ increase in oil production, leading to lower prices, was crafted by Trump in concert with the Saudis. And for the purpose in part of putting pressure on Putin. It was a “surprise” only to the idiots at the WaPo.
Good time to buy energy for the long term, yields from 6-7+% available.
Look! Up in the sky, is it a bird?
Is it a plane?
Is it Superman?
No! It's Pie!!
““Could” or will?”
Has.
$200,000,000,000 taken from pension reserve fund.
Military Spending:
Taxes on oil and gas sales by Russia account for roughly 35% of government revenues. That’s taxes. Not the entire funds flow from sales.
Russia oil flow is 11.5ish million barrels/day. Domestic consumption is 3.5 million bpd. OPEC+ agrees to restrain the 11.5ish, but as a general rule of thumb, Russia has a 7 mbpd surplus, much of which provides for the 10 mbpd oil deficit China runs annually (with 10% annual growth in consumption!).
Russia runs a few hundred billion cubic meters of gas surplus, too, far more than required by the population.
The current MET of taxation on oil production is 919 rubles/tonne (rule of thumb 7.3 barrels/tonne). One can always raise that tax rate of course, but there is generally no need. The Russians have a central bank, too, that can create infinite money from nothing, just like the Fed.
Well, OPEC should now be decreasing production.
Or a Ukrainian or Russian military drone.!
The only think Shrinking is the Ukraines land mass.😂
Buying beat down energy companies with 7%+ dividends now, easy money.
I was thinking the same thing. Do you know where I can get a good deal for a couple of 1000 barrel storage tanks for my back yard?
Oil at $52.00 barrel, yet gas is up to $3.25 a gal.
Just think..in the spring of 2022 the Zookies could have retained 90% of the lands they have now lost.
But nope, BoJo et al, told them to “fight on” we’re behind you all the way!
Didn’t work out so well.
The real bad part of this is that the Rooskies now have advanced their fighting capabilities so that a full on war with NATO would be remarkable, to say the least.
But..”FIGHT ON” we’re behind you all the way. WAAAAAAY BEHIND YOU!
“Well, OPEC should now be decreasing production.”
They just increased. The 7+% dividends are great, will keep adding as long as OPEC wants to play.
“I was thinking the same thing. Do you know where I can get a good deal for a couple of 1000 barrel storage tanks for my back yard?”
Heh, lots of 300s around here. Too much work, I prefer pushing buttons and watching the money flow in.
You might want to learn a little about supply chains if you think gas prices should instantly reflect changes in the price of a barrel of oil.
Rockets and Feathers: Why Don't Gasoline Prices Always Move in Sync with Oil Prices?
The price of gas you buy today is based on oil bought months ago.
Late 2022 is when international military experts said (paraphrasing), “The war has been decided by the failure of Ukraine’s attempt at an offensive and there’s no way for Ukraine to win.” Things have proceeded exactly as they predicted since then.
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