Russia signaling -60K BBL/d cut, compared to -230K pledged
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
OilPrice Source Article: Why Russia isn’t worried about lower oil prices