Posted on 04/21/2025 10:55:14 AM PDT by marcusmaximus
Russia's economy ministry has cut its forecast for the average price of Brent crude in 2025 by nearly 17% from what it saw the price would be this year in its September calculations, according to documents obtained by Reuters.
-snip-
The ministry sees the price for Urals, Russia's main blend, at $56 per barrel - against the $69.7 per barrel Russia has based its 2025 budget on - and below the $60 'cut off' price, which determines how much money is sent to the budget reserve National Wealth Fund (NWF).
-snip-
The price of Urals crude oil is crucial for the country's budget as oil and gas revenues make up a third of all budget revenues.
"From a budgetary perspective, these are tough conditions, but normal," the representative added.
Russia's rainy day NWF has become the main source of financing Russia's now persistent budget deficit. The fund's liquid assets have dropped by about two thirds to just $39 billion from $112.7 billion before the Ukraine conflict.
The new estimates for the price of Urals and the exchange rate of the national currency mean a 21.5% decrease in the rouble price of Russian oil to 5,281 roubles per barrel, compared to a previous forecast.
The Russian central bank warned earlier in April that oil prices could be lower than forecast for several years as a result of lower global demand.
(Excerpt) Read more at uk.finance.yahoo.com ...
“President Trump wasn’t joking about his Easter deadline to Putin.” - clownusmaximus
This isn’t exactly good news for oil producers.
I posted similar info two weeks ago and was crowing about Trump’s ability to use this leverage against Putin. I was immediately flamed about it by Team Z. Can’t figure Zeepers out.
“Russia’s rainy day NWF has become the main source of financing Russia’s now persistent budget deficit. The fund’s liquid assets have dropped by about two thirds to just $39 billion from $112.7 billion before the Ukraine conflict.”
Not just a rainy day fund. It also pays pensions starting at age 60.
Problem solved if they raise age to 65 as the average male life expectancy is 64.
“This isn’t exactly good news for oil producers.”
Just adjusting their expected price to the previous price they have already been selling to China.
not at all.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.