Russian Deputy Prime Minister Alexander Novak told reporters on Thursday that after the most recent meeting of the Organization of the Petroleum Exporting Countries and its allies (OPEC+), oil prices declined due to “wrong interpretations.”
“There are many speculative factors,” he explained. Novak further added that he believes oil prices will be between $80 and $85 per barrel until the end of 2024.
Commenting on the OPEC+’s decision to gradually restore oil production starting in October, Novak stated that this will “allow us to balance supply and demand.”
According to Bloomberg calculations, the country’s oil-related taxes in May clocked in at 632.5 billion rubles ($7.1 billion) with total oil and gas proceeds increasing 39% to 793.7 billion rubles. Russia got $74.98 per barrel for its Urals last month, up from $58.63 a year ago as the blend’s discount to the global Brent benchmark narrowed considerably despite a $60 per barrel price cap imposed by the G-7. Russia’s oil and gas budget proceeds, however, actually declined by more than 35% in May, with Bloomberg pointing out that the country’s profit-based levy is paid four times a year, in March, April, July and October. Russia’s oil revenues last month could have been even higher if the government had not paid out almost 202 billion rubles to companies to partially compensate refiners for the difference in car fuel prices in Russia and abroad.