Russian oil has fallen to $42 a barrel. That’s the same price it had before the war in the Middle East

Russian oil has fallen to $42 a barrel. That’s the same price it had before the war in the Middle East

The average price of Urals oil loaded at Russia’s western ports in the first three days of July was $41.66 per barrel.

Starting in March, the average monthly price of Urals oil had exceeded the $59 per barrel built into Russia’s budget every month. In June, after the United States and Iran agreed to resume shipping through the Strait of Hormuz, the average price of Russian oil was $60.92 per barrel.

The sharp rise in oil revenues after the start of the war in the Middle East allowed Russia to resume replenishing its reserve fund for the first time in almost a year and postpone spending cuts, Bloomberg writes. Now, if the price of Urals remains below $59 for an extended period, it will be harder for the Kremlin to contain the growing budget deficit.

@meduzalive