OPEC+ decision to increase production: Russia’s oil revenues under threat
Despite russia’s opposition, OPEC+ member countries have decided to increase oil production by an additional 411,000 barrels per day starting in June. This indicates a continued trend toward lowering global prices for “black gold.”
▫️This dynamic is extremely threatening for russia, whose budget critically depends on oil revenues. Earlier, russian government was forced to urgently revise the 2025 budget due to a growing deficit and declining energy export income.
Further drops in oil prices could significantly limit russia’s resources to continue the war against Ukraine, as well as cause an even deeper decline in living standards within russia itself. However, kremlin stubbornly continues the war, ignoring its destructive consequences for the economy and the well-being of its own population.
