3 hours ago
Last Updated:April 07, 2025, 23:34 IST
Russia's Urals crude has fallen to near $50 per barrel amid a global oil market rout. Kremlin spokesman Dmitry Peskov cited US tariffs and OPEC+ production increases as contributing factors.
Kremlin spokesperson Dmitry Peskov said on Monday that the global oil market was in a “highly turbulent and emotionally charged” state. (IMAGE: REUTERS)
Russia’s flagship Urals crude grade has tumbled alongside all major oil benchmarks in the global market rout and is close to the $50 per barrel threshold for the first time in nearly two years.
The situation on the global oil market is extremely turbulent, which is related to the US decision to impose tariffs on the majority of countries, Russian news agency TASS quoted Kremlin spokesman Dmitry Peskov as saying. The Russian authorities are keeping a close eye on the oil market selloff, Vladimir Putin’s spokesman added.
“We are closely monitoring the situation, which is currently extremely turbulent, tense and emotionally charged," Peskov said at a press briefing.
The Russian authorities are doing everything possible to mitigate the fallout of the global situation on the Russian economy, he added.
Proceeds from oil and gas sales are the most important cash stream for Russia’s federal budget.
Russian revenues from oil and gas plunged by 17% in March from a year earlier, according to data from Russia’s finance ministry, deepening fiscal pressure on Moscow as its military operation in Ukraine grinds on.
The Urals price was at around $52 per barrel at the Baltic Sea port of Primorsk on Friday, according to data from Argus Media cited by Bloomberg.
The price of Urals further dropped on Monday as oil prices continued to fall, with WTI Crude, the US benchmark, down to $60 per barrel, and Brent Crude prices at $64.
The OPEC+ decision to raise production in May by more than expected also contributed to the panic selloff.
Oil and gas revenues are the backbone of Russia’s federal budget and crucial to sustaining the war effort in Ukraine. A significant drop in energy earnings could undermine the Kremlin’s ability to fund military operations and social spending simultaneously.
Location :Moscow, Russia
First Published:April 07, 2025, 23:33 IST
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