Russia’s oil revenues fell by more than 20%
5.12.2024 - 11:57
The Russian Federation’s oil revenues fell in November amid falling global oil prices.
Russia’s oil revenues in November 2024 fell by 21% compared to the same period last year and amounted to $5.8 billion. Bloomberg reports.
This is the second consecutive drop in Russia’s revenues due to a decline in prices for Russian Urals oil. In November, the price of Urals was $64.72 per barrel, while a year ago it reached $81.69.
The decrease in revenues is due to concerns about excess supply in the market, despite the tense geopolitical situation in the Middle East and OPEC+ measures to reduce production.
Russia’s total oil and gas revenues in November fell by 17%, amounting to 801.7 billion rubles. The reduction could limit the Kremlin’s ability to finance the war in Ukraine, given that defense and security spending are the largest budget items in 2024. Russia plans to further increase defense spending in 2025, bringing the total budget to a record 13 trillion rubles.
Economists say that oil prices below $60 a barrel could pose serious problems for the Russian economy and financial markets. A report by the Russian Central Bank said that the current price level is acceptable, but further declines could cause complications.
OPEC+, which includes Russia, plans to review its production policy in early 2025. At the same time, the oil market is forecasting a surplus next year, which could force the alliance to take radical measures to support world prices.
Kazakhstan previously announced its intention to reduce oil transit through Russia by 80%.
