The price of Russian Urals crude fell to $50 per barrel following the agreement between the U.S. and Iran
Following the agreements reached between the U.S. and Iran, which facilitated the resumption of shipping through the Strait of Hormuz, the price of Russian Urals crude fell to about $50 per barrel.
According to estimates by Yegor Susin, managing director of Gazprombank Private, the price of Urals fell as the benchmark Brent crude dropped to about $72 per barrel. At the same time, the discount on Russian crude stands at approximately $21–22.
It is noted that since its April peak, when Urals was trading at $116 per barrel, its price has more than halved. This has also pushed the price below the level factored into the Russian budget.
Analysts predict that the drop in oil prices could exacerbate Russia’s budget problems as early as the end of summer. According to the publication, despite a rise in oil and gas revenues in May, the federal budget deficit for the first five months reached 6 trillion rubles, significantly exceeding the annual target.
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