Russian oil prices fall below $60 per barrel for first time in 2024

On Sept. 10, Urals crude was priced at $57.44 per barrel in Primorsk and $57.79 per barrel in Ust-Luga, while in Novorossiysk it was slightly higher at $60.33 per barrel.

Over the past two weeks, Russian oil prices dropped by $12.70, or 18%, reaching levels that Rosbank analysts say are challenging for the federal budget.

The Russian Finance Ministry's budget projections assumed Urals crude would be $70 per barrel, about 17% higher than current prices.

For the 2025 budget, the Ministry of Economic Development estimated a similar price of $69.70 per barrel.

Russia's oil and gas revenue fell to $15.3 billion in August, the lowest this year, a drop of $1.6 billion, according to the International Energy Agency.

Rosbank notes that even if oil prices stabilize around $60 per barrel, high defense spending, including $10.8 trillion on the military — nearly 30% of all spending — will strain the budget.

Previously, it was reported that Russia became China's top crude oil supplier in 2023, with Beijing purchasing significant quantities at discounted rates despite sanctions.