40% lower than predicted: the price of Russian oil has plummeted to a record low.

The price of Russian oil has reached a two-year low

The price of Russian oil in rubles has fallen below 4000 rubles per barrel, reaching a two-year low, according to Reuters.

According to the publication, the price of the Urals and ESPO blend was $48.92 per barrel, which in ruble equivalent is 3987 rubles. This is significantly lower than the budgeted price for this year of 6726 rubles per barrel.

This is the lowest price since May 2023, and it is also significantly lower than the revised government forecast - 5281 rubles per barrel, which is used for tax calculations.

Global oil prices have fallen by more than 20% since April due to forecasts that oil production will exceed consumption.

Economist Sergey Aleksashenko noted that the Russian government might allow the ruble to devalue to avoid an increase in the budget deficit.

Main news outlets have also reported that the European Commission has developed a plan for a complete halt to Russian energy resources.

Ukraine, which is a major consumer of oil and gas, may feel the consequences of falling prices for Russian oil. This could also impact the ruble and the Russian economy as a whole. Time will tell what the consequences of such fluctuations in the global oil market will be.