Russia’s Oil Pain Deepens as OPEC+ Prepares to Cut Output - Bloomberg:
The Kremlin may have succeeded in ending its oil war with Saudi Arabia, yet the pain of crude’s crash is only just starting to hit Russia’s budget.
Next month, the nation’s coffers will get less than $1 for each exported barrel of oil, according to Bloomberg calculations based on the data from the Russian Finance Ministry. Oil export duty in May is set to tumble by 87%, compared to April, reflecting crude’s biggest crash in a generation.
“This duty level is the lowest since 2002 when the new export duty mechanism was introduced,” a representative from Russia’s Finance Ministry told Bloomberg.
Russia’s oil-export tax level is recalculated monthly, based on the average price for Urals, the nation’s main export blend, over a mid-month to mid-month period. The system cushions the budget from any immediate impacts of low prices. Between March 15 and April 14, Urals crude averaged just over $19 a barrel, according to the Finance Ministry.
The Kremlin may have succeeded in ending its oil war with Saudi Arabia, yet the pain of crude’s crash is only just starting to hit Russia’s budget.
Next month, the nation’s coffers will get less than $1 for each exported barrel of oil, according to Bloomberg calculations based on the data from the Russian Finance Ministry. Oil export duty in May is set to tumble by 87%, compared to April, reflecting crude’s biggest crash in a generation.
“This duty level is the lowest since 2002 when the new export duty mechanism was introduced,” a representative from Russia’s Finance Ministry told Bloomberg.
Russia’s oil-export tax level is recalculated monthly, based on the average price for Urals, the nation’s main export blend, over a mid-month to mid-month period. The system cushions the budget from any immediate impacts of low prices. Between March 15 and April 14, Urals crude averaged just over $19 a barrel, according to the Finance Ministry.
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