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Russian Economy Feeling the Pressure as Crude Oil Prices Drop Below $80 Per Barrel (CAD 109) | by Damion Davis | Sep, 2024

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Russian crude oil prices have dropped to $80 per barrel, according to The Moscow Times, causing discomfort for the federal budget.

The Russian Ministry of Finance had expected higher revenues from selling raw materials in its budget draft.

Global oil prices fell below $94 per barrel recently, impacting Russia as the price of Russian crude oil has fallen below the level needed to ensure budget stability.

This situation could have severe consequences for the Russian economy, which heavily relies on energy raw material exports.

The decline in oil prices in September led to a drop in the prices of Russian Urals oil, negatively impacting oil company revenues.

At the beginning of the week, the price of Russian oil in Baltic ports dropped below $80 per barrel, reaching its lowest level since the start of the year.

Bank analysts warn that the current oil price levels are uncomfortable for the federal budget, as the Ministry of Finance had assumed a higher price for Urals oil in its budget draft.

Economist Yevgeny Suvorov from Bank Centrocredit points out that the collapse of oil prices could cause serious budget issues.



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