• 4 minutes The Federal Reserve and Money...Aspects which are not widely known
  • 8 minutes How Far Have We Really Gotten With Alternative Energy
  • 12 minutes  What Russia has reached over three months diplomatic and military pressure on West ?
  • 5 days Coincidence of EIA Report Delay? - "I had seen it delayed minutes, and a couple of times a few hours, but don’t recall something like this — do others?" asks Javier Blas
  • 3 days European Parliament Members, Cristian Terhes et al, push back against Totalitarian Digital ID and Carbon Tyranny in Europe.
  • 9 hours Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 2 days "How Long Will The Epic Rally In Energy Stocks Last?" by Tsvetana Paraskova at OILPRICE.COM
  • 5 days "...too many politicians believe things that aren’t true." says Robert Rapier
  • 6 days Demonising fossil fuels has caused major grid problem in Australia
  • 6 days Welcome to Technocracy - The New World Energy Order... "1000s Of Sydney Homes Plunged Into Darkness As Aussie 'Price Cap' Policy Sparks Energy Shortage"
  • 7 days "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"

Breaking News:

Oil Likely To Hit $200: SEB Group

Russia Enjoys $65 Billion Windfall As Oil Rallies

Russia could get an additional $65 billion for its state coffers this year if higher oil prices remain resilient, Bloomberg reported this week, citing estimates made by economists.

For the windfall to realize, prices need to remain around $90 per barrel of Brent for the rest of the year, according to the estimates. Yet with many forecasters expecting even higher prices later in the year, topping $100 and more, Russia may gain a lot more, up to $73 billion in additional oil revenues.

With gas prices high, too, Russian fossil fuel revenues are set to go even higher in total.

“Russia’s fiscal position is so super-stable that even with more modest oil prices, it’s hard to compromise it in the current situation,” Bloomberg quoted Renaissance Capital analyst  Donets as saying.

“This year’s energy windfall looks set to be staggeringly large. That’s swelling Russia’s fiscal reserves at just the right time for the Kremlin, providing a bigger buffer against crisis in the event of sanctions. Geopolitics aside, it also means more flexibility to boost spending and invest in the economy,” Bloomberg economist Scott Johnson told the news agency.

Forecasts about oil reaching and topping $100 this year have been multiplying recently as bullish factors strengthen, led by continued strong demand coupled with the relaxation of Covid-related restrictions. Tight supply remains in the spotlight as well, despite recent forecasts about a strong rebound in U.S. oil production this year.

It seems everyone is watching OPEC rather than the U.S. right now, with the cartel’s capacity being cited by most analysts as a big reason for their bullish forecasts.

There are also geopolitical factors: on the tailwind side, there is the situation around Ukraine that, in case of escalation, could push oil prices significantly higher, and on the headwind side, there are the Iranian-U.S. nuclear talks that just might end with a deal this time. A deal would mean more Iranian barrels coming into international markets legally, but, according to analysts, this has already been factored into prices.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:

Join the discussion | 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