Urals crude oil plummeted nearly $18, far below Russia's budget benchmark price, with the fiscal deficit reaching $77 billion in the first five months.
Russia's crude oil prices plunged again: Urals crude fell nearly $18 below the fiscal budget benchmark price.
According to Bloomberg, the average trading price of Russian Urals crude in early July was only $41.66 per barrel, while Russia’s 2026 fiscal budget sets the crude benchmark price at $59 per barrel, creating a gap of nearly $18.
In June, tensions in the Middle East once provided support for Russia's oil prices: escalating conflicts around Iran and sharply increased shipping risks in the Strait of Hormuz briefly pushed Urals crude above $60 per barrel, offering temporary relief to Russia’s fiscal pressure.
However, as tensions in the Middle East eased, international crude oil markets weakened again, causing continued downward pressure on Russia’s export crude prices. Bloomberg analysis pointed out that if this low-price situation persists, it will become increasingly difficult for Russia to bridge its fiscal deficit.
Data shows that Russia’s fiscal deficit has already reached 6 trillion rubles in the first five months of this year, equivalent to about $77 billion in USD.
Original article: toutiao.com/article/1869989922496512/
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