Russia’s oil revenues have fallen to their lowest point since February due to declining crude prices.
Urals crude, Russia’s key export, has edged closer to the $60-per-barrel cap set by the G7 following Vladimir Putin’s invasion of Ukraine. On Friday, Urals from Russia’s Baltic ports traded at an average of $60.12, according to Argus Media.
Meanwhile, Brent crude, the international benchmark, has dropped to its lowest level in three years amid worries about demand from the US and China.
In a setback for the Kremlin, OPEC’s decision to delay plans to increase production until December means Russia will need to cut production in October and November to offset the overproduction earlier this year.
As of the latest data, Brent crude was down 1.3% to below $71 per barrel, while US West Texas Intermediate was 1.4% lower, falling below $68.
Oil prices have dropped below $70 per barrel for the first time in three years.
Oil prices have fallen below $70 per barrel for the first time in three years, driven by increasing concerns about economic slowdowns in the US and China.
Today, Brent crude, the global benchmark, dropped by as much as 2.9% to a low of $69.78, with traders also worried about high supply levels.
Prior to a rebound on Monday, oil prices had declined for six consecutive trading sessions.
Norbert Ruecker, an analyst at Julius Baer, noted: “The sentiment in the oil market remains pessimistic. Fundamental challenges are likely to continue, with stagnant demand, growing production in the Americas, and the potential for a supply surplus next year.”
