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07.07.26 - 11:48
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Russia′s Oil Windfall Vanishes As Urals Crashes To $42 A Barrel (ZeroHedge)
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Russia's Oil Windfall Vanishes As Urals Crashes To $42 A Barrel
By Charles Kennedy of OilPrice.com
Russian crude oil prices have fallen back to where they were before the Middle East war, with its flagship Urals averaging just $41.66 a barrel during the first three days of July.
The drop wipes out the revenue boost Moscow received from the conflict and pressures a federal budget that assumes oil prices of about $59 a barrel.
Urals had averaged more than $59 a barrel every month since March and climbed to $60.92 in June after the U.S. and Iran reached an agreement to restore shipping through the Strait of Hormuz. Higher prices gave the Kremlin room to replenish its reserve fund for the first time in nearly a year and delay planned spending cuts. With Urals now back near $42 a barrel, that relief could be short-lived. Oil and gas account for roughly one-third of Russia's federal budget revenues.
Reuters reported Monday that a European intelligence assessment warned the country's banking s...
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