Russian oil prices drop to $50 barrel
Photo: Russian oil fell to $50 (Getty Images)
The fall in global oil prices has led to a decrease in the price of Russia's flagship oil grade, Urals, to $50 per barrel, Bloomberg reports.
According to the news agency, the decline in oil prices has increased pressure on the state budget, depriving the Kremlin of the ability to increase spending for the war against Ukraine.
According to Argus Media, the price of Urals oil from the Baltic port of Primorsk fell to $52.76 on April 4. Since the beginning of the invasion more than three years ago, Russian oil has been trading at a significant discount to the global benchmark, Brent.
Last month, the Russian Ministry of Finance stated that it expects the average oil price in 2025 to be closer to $60 per barrel instead of the $70 per barrel that was set in the country's budget for the year. In this scenario, the Ministry predicts that the budget deficit will increase, although not by more than 1% of GDP.
Global oil prices fell due to broad tariffs that the US announced last week for its trading partners, overshadowing the global demand outlook.
In addition, the OPEC+ group of producers promises to increase production next month, while Saudi Arabia has lowered oil prices.
Trump's tariffs
Last week, US President Donald Trump imposed a 10% base tariff on all imports to the US and higher tariffs for dozens of other countries, including some of the largest US trade partners. In response, China retaliated with an additional 34% tariffs on all US goods starting on April 10.
Brent oil was priced at around $75 before Trump's decision. Today, prices have fallen to $64 per barrel.
