Russia Slashes 2025 Oil Price Forecast Amidst Economic Uncertainty

Russia's economy ministry has significantly lowered its forecast for Brent crude prices in 2025, indicating potential economic challenges ahead. The Urals, Russia's main oil blend, plays a pivotal role in national revenues, with falling prices putting pressure on the budget and fiscal reserves like the National Wealth Fund.

In a recent move, Russia's economy ministry has reduced its forecast for Brent crude prices in 2025 to $68 per barrel, marking a 17% drop from the previous $81.7 prediction. This adjustment underscores potential economic strains as the nation navigates global market dynamics.

The price of Urals crude, Russia's primary oil blend, is crucial for the national budget, which relies heavily on oil and gas revenues. The revised forecast places Urals at $56 per barrel, below the previously expected $69.7 threshold, affecting budget allocations and reserves.

Pressure mounts on Russia's fiscal resources, particularly the National Wealth Fund, as international demand wanes. The ruble's devaluation further complicates economic forecasts, while the economy ministry maintains a GDP growth forecast of 2.5% amidst a global growth rate of just over 2%.

(With inputs from agencies.)