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Russia Rewriting Budgets for USD 20 Oil in 2020

Gasoil News - Published on Mon, 06 Apr 2020

Image Source: Oil Price Coronavirus Lockdown
Mr Putin has been keen to show that the economy of the world’s biggest energy exporter can cope with the 50% plunge in oil prices this year even as other oil producers struggle. Bloomberg reported that Russia is rewriting its budget to prepare for oil prices at USD 20 a barrel this year despite US led efforts to get major producers to rein in production. Sources said “To cope with lower budget revenues, the Russia will ramp up borrowing by about 1 trillion-1.5 trillion rubles (USD 13 billion-19 billion) this year. The Finance Ministry estimates the budget shortfall will total 3-4 trillion rubles this year.”

The budget proposals were likely in the works long before Trump’s latest push as Russia’s policy makers adapt to the new conditions. A nationwide shutdown starting this week is adding an extra strain on the economy, prompting calls for increased spending.

President Donald Trump called for a coordinated production cut late Thursday, prompting attempts by the OPEC+ coalition to to pull together a meeting of its members.

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Posted By : Yogender Pancholi on Mon, 06 Apr 2020
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