Current oil prices of $80-$85P/B comfortable for Russia: Deputy PM
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Recent developments in the oil market such as production cuts and geopolitical issues have reinforced the importance of a stable price range for both producing and consuming nations.
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Pump jacks extract oil from beneath the ground in North Dakota, on May 19, 2021. (AP)
Russian Deputy Prime Minister Alexander Novak said on Thursday that the current world oil price range of $80-$85 per barrel is comfortable for the Russian budget, and maintaining the balance of supply and demand is crucial
"I think that this is a normal price, which today is in the range that is comfortable for Russia, for our budget. We previously assumed that it would fluctuate approximately in the corridor of $80-$85. Now this is confirmed. Of course, it cannot stand still. It can fluctuate in one direction or another. The main thing is that the balance of supply and demand is maintained. This is the basis for the stability of the oil price," Novak told the Rossiya 24 broadcaster.
Novak's statement reflects the broader context of global oil markets and Russia's economic strategies.
Currently, oil prices within this range are seen as beneficial for Russia's budget as they ensure that the country can meet its fiscal needs without exerting undue pressure on its economy.
The price range is considered optimal as it aligns with Russia's budgetary expectations and allows the country to continue funding its national expenditures and economic plans without resorting to extreme measures.
Read more: Iraq, Kazakhstan to rebalance planned OPEC+ oil cuts
On another note, the global oil market has been influenced by various factors, including production cuts by OPEC+ members and geopolitical tensions, which contribute to the current pricing stability.
On another note, recent developments in the oil market such as production cuts and geopolitical issues have reinforced the importance of a stable price range for both producing and consuming nations.
