Price On Russian Export Oil To Remain At $80 Per Barrel Level In 2023 - Finance Ministry

Prices for Russian export oil Urals will remain elevated until the end of 2022, with an average price of $80 per barrel at the end of the year, the Russian Finance Ministry said on Thursday

MOSCOW (UrduPoint News / Sputnik - 22nd September, 2022) Prices for Russian export oil Urals will remain elevated until the end of 2022, with an average price of $80 per barrel at the end of the year, the Russian Finance Ministry said on Thursday.

"Oil prices are expected to remain elevated until the end of the year (even though Russian export commodities are trading at a discount to world prices) and at the end of 2022 will be $80.0 per barrel," the ministry said in the draft of the main directions of the budget, tax, customs and tariff policy of Russia for 2023 and the planning period of 2024 and 2025, obtained by Sputnik.

A significant increase in oil quotations in the first half of 2022 is rooted in and increased demand for non-Russian oil from a number of countries amid the oil embargo and the decision by OPEC+ alliance of oil producing countries, on a restrained increase in oil production, the ministry added.

According to the ministry, a gradual decline in oil prices to about $65 a barrel is expected by 2025 due to the global energy market transformation and the gradual slowdown of the global economy.

Global energy prices have been surging since 2021. After the beginning of Russia's military operation in Ukraine in February 2022 and the adoption of several packages of sanctions against Moscow by the West, energy prices, including oil prices, have accelerated the growth, pushing many western governments to resort to contingency measures and search for alternative suppliers.

In September, G7 finance ministers also confirmed their intention to impose price caps on Russian oil and called on all nations to support the initiative. The price cap is scheduled to take effect on December 5, 2022, for crude oil and on February 5, 2023, for refined products coming from Russia.

Moscow, in turn, has pledged to altogether stop exporting Russian oil to the countries that impose the price cap.