Russia enjoys $65 billion windfall as oil rallies

Russia enjoys $65 billion windfall as oil rallies

Russia could get an additional $65 billion for its state coffers this year if higher oil prices remain resilient, Bloomberg reported this week, citing estimates made by economists.

For the windfall to realize, prices need to remain around $90 per barrel of Brent for the rest of the year, according to the estimates. Yet with many forecasters expecting even higher prices later in the year, topping $100 and more, Russia may gain a lot more, up to $73 billion in additional oil revenues.

With gas prices high, too, Russian fossil fuel revenues are set to go even higher in total.

“Russia’s fiscal position is so super-stable that even with more modest oil prices, it’s hard to compromise it in the current situation,” Bloomberg quoted Renaissance Capital analyst Donets as saying.

“This year’s energy windfall looks set to be staggeringly large. That’s swelling Russia’s fiscal reserves at just the right time for the Kremlin, providing a bigger buffer against crisis in the event of sanctions. Geopolitics aside, it also means more flexibility to boost spending and invest in the economy,” Bloomberg economist Scott Johnson told the news agency.

Forecasts about oil reaching and topping $100 this year have been multiplying recently as bullish factors strengthen, led by continued strong demand coupled with the relaxation of Covid-19-related restrictions. Tight supply remains in the spotlight as well, despite recent forecasts about a strong rebound in US oil production this year.

It seems everyone is watching OPEC (the Organization of the Petroleum Exporting Countries) rather than the US right now, with the cartel’s capacity being cited by most analysts as a big reason for their bullish forecasts.

There are also geopolitical factors: on the tailwind side, there is the situation around Ukraine that, in case of escalation, could push oil prices significantly higher, and on the headwind side, there are the Iranian – US nuclear talks that just might end with a deal this time. A deal would mean more Iranian barrels coming into international markets legally, but, according to analysts, this has already been factored into prices.

For more stories on economy & finance visit RT's business section

Source: www.rt.com

The last notes - Экономика

most read news

#Экономика

Authorities in Warsaw have allowed citizens to forage for firewood in forests to keep their homes heated amid spiralling energy costs. Poland is in the midst of a coal shortage after banning Russian
подробнее...

Polish companies have limited the sale of coal in the country after blocking imports from Russia, Deputy Minister of State Assets Piotr Pyzik said during his speech in Parliament on Friday.He
подробнее...

If a fresh wave of government assistance is not released immediately, some 500,000 small businesses in the UK will go bankrupt within weeks, the chairman of the Federation of Small Businesses (FSB)
подробнее...

Europe’s largest producer of atomic energy, Electricite de France SA (EDF), usually exports cheap power during the winter but may be forced to import it this year, Bloomberg reported on
подробнее...

The UK has introduced a 25% windfall tax on energy producers’ profits, which will fund support grants for residents who are unable to pay their soaring energy bills, UK Chancellor of the Exchequer
подробнее...

The suspension of Russian gas supplies would be “a serious blow” to the welfare of the Austrian people as it threatens some 300,000 jobs, Kronen Zeitung newspaper reported citing the Federation of
подробнее...

The White House fears that the confiscation of Russian assets could damage its reputation, the New York Times reported on Tuesday.According to the newspaper’s sources, top officials in President Joe
подробнее...

Asian countries became the largest importers of Russian oil for the first time in April 2022, overtaking Europe, Bloomberg reported on Friday, citing Singapore-based analytics firm Kpler.Roughly 71.7
подробнее...

Komatsu, Japan’s largest construction and mining equipment manufacturer, has resumed deliveries to Ukraine, halted after the launch of Russia’s military offensive, the Nikkei newspaper reported on
подробнее...

An embargo on Russian natural gas would seriously affect the German economy, as well as society, Labor Minister Hubertus Heil said in an interview with news outlet Funke, published on Saturday.“We
подробнее...

The European Commission on Friday announced the introduction of an anonymous online platform for people to report any violations of sanctions on Russia and Belarus.“Aware of anyone violating EU
подробнее...

The Haidach underground gas storage facility in Austria may not be refilled by the next heating season due to a conflict between Berlin and Moscow over the seizure of Gazprom’s German subsidiary,
подробнее...

Shipments of Russian oil to India exceeded 396,000 tons in March, according to the Ministry of Commerce. That is more than a 15% rise from the previous month and a 40% increase on an annual
подробнее...

The globe’s top reserve currencies, the US dollar and euro, have become “toxic” for Russia, Finance Minister Anton Siluanov said on Friday.“The American and European currencies are toxic for us. What
подробнее...

The liquefied natural gas (LNG) market could be hit with a potentially historic shortage this winter as the world rushes to secure the super-chilled fuel, Bloomberg reported this week, citing
подробнее...

The West is considering removing Russian citizens from sanctions lists if they provide funds to rebuild Ukraine, the AP reported on Thursday, citing sources.According to the report, the idea was
подробнее...

The number of people in the world facing acute hunger is predicted to increase by 18 million due to the crisis in Ukraine, Maurizio Martina, the vice director of the UN Food and Agriculture
подробнее...

Russian oil major Rosneft plans to file a lawsuit against the US Treasury Department, the company’s spokesman Mikhail Leontyev told the newspaper Vedomosti this week. Rosneft’s decision followed
подробнее...