Russia signaling -60K BBL/d cut, compared to -230K pledged

 In Daily Hot Topics - Crude

Russia is signaling cuts of -60,000 BBL/d, as compared to pledged -230,000 BBL/d.

There are 2 reasons driving Russia’s behavior;

  • Currency devaluation – Brent pricing is down -13% year on year, and Ruble is down -15% year on year, so the net effect is price received in Ruble local currency is up +3% year on year
  • Budget – Russia is budgeting $42 BBL USD crude, as compared to Saudi Arabia $84 BBL USD crude

Don’t look for Russia to follow pledged cuts.

– Mike Reed

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OilPrice Source Article: Why Russia isn’t worried about lower oil prices

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