• 5 minutes China Faces Economic Collapse
  • 8 minutes ZeroHedge: Oil And Gas Bankruptcies To Accelerate As $137 Billion Debt Matures Over Next Two Years
  • 11 minutes Trump Will Win In 2020
  • 14 minutes Oil Production Growth In U.S. Grinds To A Halt
  • 2 hours The Belt & Road Initiative: A Wolf in Sheep's Clothing?
  • 27 mins Drone attacks cause fire at two Saudi Aramco facilities, blaze now under control
  • 4 hours How OPEC and OECD play their role in setting oil price in light of Iranian oil sanction ?? Does the world agree with Iran's oil sanctions ???
  • 2 hours Cost of oil
  • 3 hours Democrats and Gun Views
  • 11 hours Swedish Behavioral Scientist Suggests Eating Humans to ‘Save the Planet’ from Climate Change. What could possibly go wrong?
  • 12 hours Trump Orders Biofuel Boost
  • 16 hours Buy Oil Monday?
  • 7 hours Iran says tanker oil sold at sea, buyer sets destination
  • 15 hours Used Thin Film Solar Panels at 15 Cents per Watt
  • 12 hours “Who’s going to bail out the Central Banks?”
  • 2 hours US and China are already in a full economic war and this battle for global hegemony is a little bit frightening
  • 15 hours Green New Deal Preview in Texas Town
Alt Text

Yergin: Expect Extreme Volatility In Oil Markets

Supply and demand issues and…

Alt Text

Is It Time To Go Long On Natural Gas?

Buying natural gas futures in…

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

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

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
Download on the App Store Get it on Google Play