Russia Faces Crushing Low Oil Prices Amidst Economic Uncertainty
Russia’s Economic Development Ministry drastically lowered its 2025 Urals crude oil price forecast to $56 per barrel, a level unseen since the 2020 pandemic. This significantly undercuts the budget’s $69.70 per barrel projection and the $60 cutoff triggering National Wealth Fund withdrawals. The price drop reflects a global economic slowdown and rising recession fears, resulting in substantial revenue shortfalls for the Russian budget. Analysts project billions of rubles in deficit if prices remain low, necessitating further NWF liquid asset depletion.
John Q. Hosedrinker