Russia Still Sells Oil Above Ø 2021 Prices, For Now…
When Markets Bite: Falling Oil Prices & Over 20% Discount
Crude oil prices have come down a lot recently factoring in a chilled global economic outlook. For Russia, this is bad news as crude oil is its most important source of income. According to the Federal Customs Service of Russia, crude oil exports made up 22% of total exports 2021 well above natural gas at „only“ 11%. Since the Invasion of Ukraine Russia has to grant hefty discounts on black gold which are still north of 20%. This is particularly painful when prices are falling…
So All Bad For Russia? Well, Not Quite Yet
Below chart shows that Russia currently still gets US$74.5 per barrel of its oil, which is still 8% higher than the average price of 2021 at US$69.2, indicating a still comfortable price level (please note, that any declines in sales volumes are not considered). At the current trend, this premium might, however, be diminishing soon.
