Support The Moscow Times!

Brent Oil Prices Dip to Lowest in 11 Years

Futures for Brent crude oil dropped to $36.18 a barrel Monday, reaching an 11-year low, the RIA Novosti agency reported.

Around 8 a.m. Moscow time, Brent oil futures dropped 1.21 percent to $36.21 per barrel, earlier sliding to $36.18, less than the 2004 low of $36.2 per barrel.

West Texas Intermediate also saw its futures slide 0.98 percent on Monday, to reach $35.7 per barrel.

“The market is quite weak right now and for Brent to fall to $35 a barrel is very possible in the near term but soon bargain-hunting by some hedge-fund managers will likely kick in to lift prices,” Daniel Ang, a Phillip Futures energy analyst told the Wall Street Journal Monday.

Russia's 2016 budget bill, signed by President Vladimir Putin on Dec.15, projected the average price of Russian Urals oil at $50 per barrel in the next year.

The budget deficit limit was set to 3 percent GDP. The Finance Ministry estimated Russia's GDP at 78.7 trillion rubles ($1.15 trillion) in the 2016 budget bill. Its deficit forecast, because of the oil price and falling ruble, was 1 trillion rubles ($14.4 billion).

With an oil price baseline of $40 a barrel, Russia's budget deficit is expected to reach 1.5 trillion rubles ($21.7 billion) in 2016.

Read more

Independent journalism isn’t dead. You can help keep it alive.

The Moscow Times’ team of journalists has been first with the big stories on the coronavirus crisis in Russia since day one. Our exclusives and on-the-ground reporting are being read and shared by many high-profile journalists.

We wouldn’t be able to produce this crucial journalism without the support of our loyal readers. Please consider making a donation to The Moscow Times to help us continue covering this historic time in the world’s largest country.