The prices of Russia’s flagship Urals oil blend at the end of November have surpassed the level used to compose the state budget for 2024, thanks to a sharp rouble weakening, Reuters calculations showed on Wednesday.

Still, for January-November, the average Urals price in roubles has amounted to 6,241 roubles per barrel, 2.6% below the budgeted level, the data showed. Urals trades above $63 per barrel.

Revenues from oil and natural gas sales account for around a third of the state budget and have been the key source of state income.

According to the Reuters data, Urals prices have been keeping above 6,500 roubles per barrel since Nov. 21. The price was budgeted at 6,424 roubles per barrel, as the Urals price was projected at $71.3 per barrel while the rouble rate was set at 90.1 roubles per $1

The Russian rouble weakened beyond the 110 mark to the U.S. dollar on Wednesday, a threshold that some analysts believe could prompt authorities to take action to support the currency, which has fallen by more than 24% since early August.

The rouble’s slide was exacerbated by new sanctions on Russia’s financial sector, which disrupted foreign trade payments, especially for oil and gas, creating a physical shortage of currency in the Russian market, analysts said.
Source: Reuters