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Russia's Urals Oil Price Reaches Lowest Since November 2020

The price of Russia's flagship Urals oil in Rubles has hit its lowest level since November 2020, according to Reuters calculations.

Russian oil tank
Russian oil tank

Trading is currently around a third lower than the government had assumed in its 2023 budget.

The government last year ran a budget deficit of around 3.3 trillion Rubles ($48.7 billion) or 2.3% of the gross domestic product. The average price of Urals has fallen to 3,233 Rubles per barrel in January, 32.5% below the 4,788 Rubles per barrel, or $70.1 per barrel, used when Russia's 2023 budget was compiled.

The oil price in the Rubles is important for the budget and the setting of both the mineral extraction tax and Russia's oil export duty. The Ruble has strengthened this month after a fall in December and received support earlier this week when the central bank said it would start selling foreign currency on forex markets.