X

Sign Up To Our Free Newsletter

Join Now

Thanks for subscribing to our free newsletter!

ERROR

  • 4 minutes IMPORTANT ARTICLE BY OILPRICE.COM EDITOR - "Naked Short Selling: The Truth Is Much Worse Than You Have Been Told"
  • 5 minutes “Cushing Oil Inventories Are Soaring Again” By Tsvetana Paraskova
  • 7 minutes United States LNG Exports Reach Third Place
  • 30 mins Texas forced to have rolling black outs. Not from downed power line , but because the wind energy turbines are frozen.
  • 1 day Wednesday Nikki Haley reached out to Trump for meeting at Mar-a-lago. Trump said No ! You blew it Nikki . . .
  • 1 day NYT:  The Supreme Court’s order (Re:  Trump’s tax returns) set in motion a series of events that could lead to the startling possibility of a criminal trial of a former U.S. president
  • 8 hours Retired RAF pilot wins legal challenge over a wind farm
  • 10 hours Speaker Pelosi, "Tear Down This Wall"
  • 10 hours Disaster looming in UK offshore wind power
  • 10 hours The World Economic Forum & Davos - Setting the agenda on fossil fuels, global regulations, etc.
  • 7 hours Minerals, Mining and Industrial Ecology
  • 3 hours U.S. Presidential Elections Status - Electoral Votes
  • 9 hours Chance for (Saudi)Arabian peninsula having giant onshore Gas too?
  • 10 hours The latest GOP nonsense on Texas shows us the future Republicans want
  • 12 hours Pipeline vs Train vs Ship to Transport Crude Oil.
Texas Refinery Restarts Could Take Until April

Texas Refinery Restarts Could Take Until April

Texas' largest refineries are restarting…

Investment In Battery Tech Exploded In 2020

Investment In Battery Tech Exploded In 2020

In 2020, announced debt and…

Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

Putin: Oil Price Volatility Is Hurting Russia's Economy

Economic realities including the fluctuating international oil prices are among factors interfering with the Russian government’s economic program, President Vladimir Putin said in an interview with Italian Corriere della Serra ahead of a state visit to Rome.

Asked about why, despite his overwhelming victory in the latest elections and the virtual non-existence of opposition, economic plans have struggled to take off, Putin said, “It’s not a question of the percentage of votes in the elections, but of the economic reality that Russia has to deal with, such as falls or fluctuations in international prices for our traditional export goods, from oil and gas to metals.”

The Russian president added, “Nor should we forget the influence of external restrictions,” most likely referring to U.S. and European sanctions that followed Russia’s annexation of Crimea in 2014. However, Putin also said Russia was ready to work on improving bilateral relations with the United States, but added that the ball was now in the U.S. court.

Russia has budgeted much lower prices than the current ones for 2019, which makes it quite a bit more resilient to negative trends in the benchmarks. Putin himself said as much last month when responding to questions about whether Russia would back the Saudi-proposed extension of OPEC+ production cuts.

Russia’s budget for this year is based on an average price of US$40 per barrel of crude as Moscow continues its cautious budgeting approach after the fallout of the 2014 price crisis. Saudi Arabia, on the other hand, needs oil at US$80-85 per barrel to break even this year.

In fact, for Russia, the oil price level that would suit Middle Eastern producers could be prohibitively high as it would weaken demand for the commodity that, together with natural gas, makes up as much as 40 percent of federal budget revenues.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News