Bad news for the Russian economy. Saudi Arabia intends to increase its oil productiona movement that will increase the supply of crude oil in the market and, consequently, will lower prices.
Specifically, Saudi Arabia plans to increase its level of oil production starting December 1, something that will probably It will make the beginning of 2025 complicated for the country chaired by Vladimir Putin.
It should be remembered that oil is one of the main economic drivers of Russia, and A drop in prices would damage an already stressed economy by Western sanctions and the need to continue financing the war in Ukraine.
This has been pointed out, in statements to Newsweek the director of the Ukraine Forum at the Chatham House think tank, Orysia Lutsevych, who highlighted that “oil and gas remain one of Russia’s main sources of budget revenue.”
“So far, despite the oil price cap imposed by the EU, Russia has managed to increase these sources of income, which is key to financing its war in Ukraine,” the expert explained. However, Lutsevych has stressed that “A reduction in the price of oil, if substantial, would add additional pressure to the Russian budget.”
To this, furthermore, it should be added that “sanctions make access to parts more expensive for Russiahence “Limiting oil revenues will put pressure on the system.”added the director of the Ukraine Forum at Chatham House.
