The average Russian oil price in April fell to $ 55.6 per barrel – below the price restriction of G7 countries.
According to April results, Russia gained $ 13.2 billion from exports of raw oil and oil products. This is the lowest indicator in almost two years, the Bloomberg reported with the International Energy Agency (IEA) reference on Thursday, May 15.
It is indicated that the cause of the downfall of the Russian Federation’s income is a reduction in world oil prices and weak demand. According to the IEA, the average Russian oil price in April fell to $ 55.6 per barrel – below the price restriction of G7 countries.
“Russian oil prices have complied with international trends. It is expected that growing uncertainty in trade negatively affects the world’s economy and, accordingly, demand for oil,” the report said.
Since the beginning of the year, Brent has become more than 14%from the beginning of the year. This is due to fears about the consequences of US tariff policy and reducing demand in China. A possible excess in the market can also bring increased supplies from Iran.
Russia’s budget is especially sensitive to changing oil prices, as the oil and gas industry provides nearly 30% of its receipts. In April, budget deficiency grew – it could complicate the funding of military spending against the background of a long war in Ukraine.
Despite reducing revenue, Russian oil exports from April to 7.55 million barrels per day have grown. At the same time, VSU premium mixed volumes reach record values- more than 1 million barrels per day.
“Deep discounts attract alternative customers,” the agency noted, adding that at the same time the Chinese refinery reduced oil extraction from the Far East of the Russian Federation.
Total oil production in Russia in April rose to 9.3 million barrels per day – it facilitated both exporting and a slight restoration of refinery work after a reduction in the number of drones.
Earlier, Deputy Prime Minister of the Russian Federation Alexander Novak said Russia would survive “any oil prices”, as its economic dependence on Hydrocarbons is said to have been reduced.
And the day before it was known that the Kremlin was gathering an urgent conference due to a fuel deficiency in Russia against the background of a sowing campaign.
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Source: korrespondent
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