Support The Moscow Times!

Now is the time to support independent reporting from Russia!

Contribute Today

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

Russia media is under attack.

At least 10 independent media outlets have been blocked or closed down over their coverage of the war in Ukraine.

The Moscow Times needs your help more than ever as we cover this devastating invasion and its sweeping impacts on Russian society.