Economics

Every dollar reduction in oil prices costs Russia billion

15 october 2014 | 15:13

Russia is losing billions of dollars because of falling revenues from some of the most important exporters.

 

Rosneft
Russia's budget is threatened to go into deficit
rosneft.ru
The budget of the Russian Federation loses 80 billion rubles when the decrease in world price of a barrel of oil drops one US dollar.

This was stated by the Head of Long Term Strategic Planning Department Maxim Oreshkin, Bloomberg writes.

The Agency reminds that in 2009, when the price of oil fell to $ 61.30 per barrel, Russia's budget deficit, based on the price of per barrel, became 5.9%.

Bloomberg recalls that the Brent crude oil price fell more than 20 percent from the level in June, depriving Russia of billions of dollars in tax revenue from the most valuable articles of export. Sberbank of Russia estimates that the country's budget would drop to the deficit if the price falls below 4 a barrel. Priced at , the size of the deficit will amount to 1.2% of GDP.

This Tuesday, Oct. 15, November futures price for Brent crude oil has already reached 83.41 dollars per barrel. American WTI crude oil fell in New York by 4.6% to per barrel.

Recall also on Tuesday International Energy Agency has cut its forecasts for global demand in 2014 by 200 thousand barrels per day to 92.4 million barrels, waiting for demand growth by the end of 2014 by 0.7% in annual terms. The IEA estimates that in 2015 world oil demand will increase by 1.1 million barrels per day, or 1.2% to an average of 93.25 million barrels per day.

However, the previous agency outlook for oil demand in 2015 is reduced by 300 thousand barrels per day. The IEA has estimated that in 2014 the growth in global oil demand may be the weakest since 2009.

Source: zn.ua

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