• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 2 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 1 day Could Someone Give Me Insights on the Future of Renewable Energy?
  • 1 day How Far Have We Really Gotten With Alternative Energy
  • 1 day The United States produced more crude oil than any nation, at any time.
  • 7 hours "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
  • 12 hours Bankruptcy in the Industry
OPEC+ Can Stop An Oil Rally To $100

OPEC+ Can Stop An Oil Rally To $100

The OPEC+ group could influence…

Explaining the Israel and Iran Missile Exchange

Explaining the Israel and Iran Missile Exchange

In response to Iran's attack…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Russia’s Breakeven Oil Price Falls To Decade Low

Kremlin

Amid internal and external economic uncertainties, Russia keeps a conservative budgeting policy and has its 2019 budget break even at an Urals price of $49.20 a barrel, the lowest breakeven price in over a decade, Alexandra Suslina, a budget specialist at the Economic Expert Group, told Bloomberg on Thursday.

Urals, Russia’s key export grade, currently trades at $56.80 a barrel.

Probably worried by the effect of the sanctions on Russia and anemic economic growth, Russian President Vladimir Putin continues to keep a tight financial policy, Danske Bank strategist Vladimir Miklashevsky told Bloomberg.  

Russia doesn’t need oil prices to be too high and sees the $60-65 a barrel price—the price at which Brent Crude currently trades—as “quite satisfactory,” Putin said in early June, a month before OPEC and the Russia-led non-OPEC group of producers rolled over their production cuts into March 2020.

“The Russian processing industry itself is not interested in very high oil prices. Well, the average price around 60-65 dollars per barrel is quite satisfactory, we don’t need to drive up [price] to the top, we already have a decent margin, in terms of budget,” Putin said in June.

A month later, the Russian president admitted that economic realities including the volatile international oil prices are among factors interfering with the Russian government’s economic program.

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 Tsvetana Paraskova for Oilprice.com

ADVERTISEMENT

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News