The price of oil at $70 is not catastrophic for Russia, but its decline will weaken its economy
A sharp drop in world oil prices could become an important lever of economic pressure on Russia. This will force the Russian leadership to begin negotiations to end military conflicts.
This opinion was expressed by the US President's Special Representative for Ukraine and Russia Keith Kellogg, Fox News writes.
He said that the oil sector is critically important for filling the Russian budget. “Russia makes billions of dollars from selling oil. What if the price dropped to $45 a barrel, which is equal to its cost?,” Kellogg said, commenting on Trump's speech in Davos.
According to Kellogg, the current price of oil is about $70 a barrel, but a decrease in this figure will significantly weaken the Russian economy, which is heavily dependent on energy resources.
According to him, Trump is convinced that the war in Ukraine will not end thanks to events on the battlefield. Diplomacy and economic pressure, in his opinion, play a key role in achieving peace. “Economics and diplomacy are how we will end this war,” Kellogg concluded the president's words.
As of January 24, 2025, the prices of benchmark oil grades are:
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