Russia's decision to start negotiations with OPEC on oil production freeze added about 400 billion rubles – or more than 6 billion US dollars – to country's budget in 2016, Bloomberg reported on Thursday, November 17.
With Russia's entry into the negotiations, world oil prices grew from 27 to 44 US dollars per barrel amid positive expectations of market participants.
High oil prices increased the country’s budget revenue that mainly consists of export duties and mineral extraction tax. The agency stated that oil and gas stock Russian coffers up to 40 percent. In January, when oil prices were their lowest, revenues from hydrocarbons fell to a 12-year low.
On November 17, Brent crude oil was trading at 46.69 US dollars per barrel at the London Stock Exchange ICE. American WTI crude oil was 45.5 dollars.
On September 28, in Algiers OPEC countries tentatively agreed to stabilize the oil prices. OPEC members set a production ceiling at 32.5 million barrels per day. The final version of the agreement is expected to be signed at a meeting in late November.
