Part 5/10:
From mid-2022 into 2023, while Russia maintained a pricing gap of about $10 per barrel below the Brent crude prices, the revenue from oil sales remained high enough to keep financial belts relatively loose. However, the economic tide appears to be shifting dramatically.
A Sharp Decline in Oil Prices
As noted, Brent crude has dramatically nested at approximately $60 per barrel following the tariff announcement, reflecting a significant decline from about $75 per barrel. The true decline might be even more severe given the weakening dollar, which has fueled fears of a looming global recession and reduced oil demand. Compounding this issue is an increase in global oil supply thanks to Saudi Arabia unwinding previous voluntary cuts to stabilize prices.