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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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Russia’s Oil Price Forecast Cut Could Pressure Budget
The downward revision of Russia’s forecasted crude export prices could put more pressure on Russia’s budget.
- Russia’s Economy Ministry downgraded expectations for crude export prices for the next three years to $65/b.
- This was cut from previous estimates of $71.3/b for 2024, $70.1/b in 2025 and $70/b in 2026, Reuters said.
- Russian crude cargoes currently cannot access Western providers at prices above $60/b, known as the G7 price cap.
- Lower oil prices could add additional pressures to Russia’s budget, which saw a shortfall of 0.3% of GDP in Q1, according to Reuters. Nonetheless, the Economy Ministry upgraded 2024 GDP growth forecasts to 2.8% from 2.3%.
- Russia could also lose out in the long term due to lost gas flows to Europe. Gas prices to China – its target market - are expected to be up to 28% lower than to Moscow’s remaining European clients through to 2027.
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.