The price of Urals oil in Europe exceeded the cut-off price in the Russian budget, rising by $3.44 and reaching $42.55. This was reported on June 8 in the international pricing Agency Argus.
On Thursday, the price of the brand in the region was $39.11 per barrel, RIA Novosti notes. Since the fall of the oil price and the minimum price of $10.54 per barrel on April 1, the price of Russian oil has exceeded the cut-off price in the budget, which is $42.4 per barrel in 2020.
The budget rule provides for the accumulation in reserves of additional revenues of the Russian budget from the sale of oil and gas, when the cost of energy carriers on the market is higher than the established cut-off price. On the contrary, if world prices for hydrocarbons fall, the accumulated funds will be spent on fulfilling budget obligations.
In 2020, the cutoff bar is $42.4 per barrel.
On April 24, Deutsche Bank predicted that the liquid resources of the Federal reserve at the price of Urals oil at $15 per barrel will last for two years. If it rises to $30 a barrel, the Fund’s money will last for six years.
On May 6, the Ministry of Finance of Russia reported a decrease in the average price of Urals oil in April 2020 to $18.22. This figure was almost four times less than in the same month of 2019, $71.54.
On April 12, OPEC+ countries agreed to reduce oil production by 9.7 million barrels per day in May–June this year, by 7.7 million in the second half of the year and by 5.8 million further until the end of April 2022.