Russia’s Oil and Gas Revenues Set to Plunge 35% – Here’s Why

Analysts warn that Russia’s oil and gas revenues could decline by around 35% in November compared with the same month last year, due to falling oil prices, a stronger ruble, and the ongoing impact of sanctions.

Reuters reports that.

Analysts estimate that in November, the Russian budget will receive approximately 520 billion rubles in revenues from the oil and gas sector, which is 7.4% less than in October.

Journalists note that Russia could collect around 8 trillion rubles in such revenues between January and November. According to their estimates, this figure is 22% lower than for the same period last year.

In particular, from January to November, Russian oil averaged $57.30 per barrel, compared to $68.30 per barrel over the same period last year.

It was also reported that the ruble strengthened to an average rate of 81.1 rubles per US dollar, compared with 91.7 rubles last year. Analysts say that sanctions continue to pressure Russian exports, limiting energy sales and market flexibility.

By the way, about 48 million barrels of Russian oil could remain stranded at sea for an extended period due to new U.S. sanctions against Rosneft and Lukoil. As a result of the restrictions, dozens of tankers are rerouting and seeking new buyers, especially after Indian refineries sharply reduced their purchases.

It was previously reported that the expanded sanctions targeting Chinese ports and oil refineries are significantly disrupting the flow of Russian and Iranian oil to China, the world’s largest consumer of crude oil

As a reminder, world oil prices continued to decline amid increased US initiatives regarding a possible peace agreement between Ukraine and Russia.

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