• 12 hours Shell Oil Trading Head Steps Down After 29 Years
  • 16 hours Higher Oil Prices Reduce North American Oil Bankruptcies
  • 18 hours Statoil To Boost Exploration Drilling Offshore Norway In 2018
  • 19 hours $1.6 Billion Canadian-US Hydropower Project Approved
  • 21 hours Venezuela Officially In Default
  • 23 hours Iran Prepares To Export LNG To Boost Trade Relations
  • 1 day Keystone Pipeline Leaks 5,000 Barrels Into Farmland
  • 1 day Saudi Oil Minister: Markets Will Not Rebalance By March
  • 1 day Obscure Dutch Firm Wins Venezuelan Oil Block As Debt Tensions Mount
  • 2 days Rosneft Announces Completion Of World’s Longest Well
  • 2 days Ecuador Won’t Ask Exemption From OPEC Oil Production Cuts
  • 2 days Norway’s $1 Trillion Wealth Fund Proposes To Ditch Oil Stocks
  • 2 days Ecuador Seeks To Clear Schlumberger Debt By End-November
  • 2 days Santos Admits It Rejected $7.2B Takeover Bid
  • 2 days U.S. Senate Panel Votes To Open Alaskan Refuge To Drilling
  • 2 days Africa’s Richest Woman Fired From Sonangol
  • 3 days Oil And Gas M&A Deal Appetite Highest Since 2013
  • 3 days Russian Hackers Target British Energy Industry
  • 3 days Venezuela Signs $3.15B Debt Restructuring Deal With Russia
  • 3 days DOJ: Protestors Interfering With Pipeline Construction Will Be Prosecuted
  • 3 days Lower Oil Prices Benefit European Refiners
  • 3 days World’s Biggest Private Equity Firm Raises $1 Billion To Invest In Oil
  • 4 days Oil Prices Tank After API Reports Strong Build In Crude Inventories
  • 4 days Iraq Oil Revenue Not Enough For Sustainable Development
  • 4 days Sudan In Talks With Foreign Oil Firms To Boost Crude Production
  • 4 days Shell: Four Oil Platforms Shut In Gulf Of Mexico After Fire
  • 4 days OPEC To Recruit New Members To Fight Market Imbalance
  • 4 days Green Groups Want Norway’s Arctic Oil Drilling Licenses Canceled
  • 4 days Venezuelan Oil Output Drops To Lowest In 28 Years
  • 4 days Shale Production Rises By 80,000 BPD In Latest EIA Forecasts
  • 5 days GE Considers Selling Baker Hughes Assets
  • 5 days Eni To Address Barents Sea Regulatory Breaches By Dec 11
  • 5 days Saudi Aramco To Invest $300 Billion In Upstream Projects
  • 5 days Aramco To List Shares In Hong Kong ‘For Sure’
  • 5 days BP CEO Sees Venezuela As Oil’s Wildcard
  • 5 days Iran Denies Involvement In Bahrain Oil Pipeline Blast
  • 7 days The Oil Rig Drilling 10 Miles Under The Sea
  • 8 days Baghdad Agrees To Ship Kirkuk Oil To Iran
  • 8 days Another Group Joins Niger Delta Avengers’ Ceasefire Boycott
  • 8 days Italy Looks To Phase Out Coal-Fired Electricity By 2025
Are Oil Prices About To Turn Lower?

Are Oil Prices About To Turn Lower?

As too many bearish factors…

Finance Minister: Russia Adapted To Lower-for-Longer Oil Prices

Refinery

This year Russia’s budget is reaching its highest level of resistance to oil price swings in the past nine years, Russian Finance Minister Anton Siluanov told Parliament on Friday.

We see that the so-called non-oil and gas budget deficit is going down, which demonstrates the resistance of the budget to various fluctuations related to international environment, Siluanov said, as quoted by Russia’s TASS news agency.

The share of the non-oil and gas deficit is expected to fall by 0.6 percentage points to stand at 8.4 percent of GDP, the lowest in nine years, the minister said.

The share of oil and gas revenues in 2017, on the other hand, is expected slightly down from previous years, at around 40 percent of all federal budget revenues, according to Siluanov.

While the non-oil deficit is expected down, the value of the Russian ruble is up 11 percent year-on-year, RT quoted Siluanov as saying.

Total fiscal deficit this year is now expected to account for 2.1 percent of GDP in 2017, compared to an original forecast for a 3.2-percent share, according to Russia’s finance minister.

In order to protect the budget from external risks, Russia needs to continue sticking to a conservative oil price forecast of US$40 per barrel, Siluanov said, as posted in a tweet by the finance ministry.

Last week, Russia’s Economy Minister Maxim Oreshkin said that the current underlying key assumption of Russia’s economic policies—oil prices at US$40—can allow it to live forever at that price or below. From a Russian economy perspective, the key assumption on which all Russian monetary and fiscal policies are based is oil at US$40, Oreshkin said. Russia is not as dependent on the price of oil as it was five or ten years ago, Oreshkin noted, and said:

“We are actually ready to live forever at oil prices $40 or below.”

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • Kr55 on June 09 2017 said:
    I'm sure people in Russia love paying >2 times as much for any non-Russian made products then they did a few years ago.

Leave a comment

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