“OPEC and OPEC+ are increasing production. But Putin will stop killing people if energy prices fall by another $10 per barrel. He will have no choice because his economy is weak”, said US President Donald Trump.
Note that as of August 5, Brent crude was trading below $68 per barrel. According to current market trends, Russia typically sells its crude $10-15 below market value. If crude oil prices go below $60, it means that Russia will be selling its oil around $45 per barrel, which would leave the Kremlin’s war machine without fuel.
Additionally, due to the decline in global oil prices and the strengthening of the ruble, Russian tax revenue from the oil industry in July were about ₽710.4B ($8.9B), which is nearly 33% less than a year earlier. Total revenues from oil and gas decreased by 27% to ₽787.3B ($9.82B). The oil and gas sector accounts for roughly 33% of the Russian budget.
Meanwhile, Indian oil company Nayara Energy, partly owned by Rosneft, exported its first batch of gasoline (around 43,000 tons) after being placed under EU sanctions, using a sanctioned tanker to transport it.