Putin Says $50 Oil Price is Too Optimistic for Russian Budget

Russian President Vladimir Putin said on Thursday the $50 per barrel price for oil factored in the 2016 budget was too optimistic and the government needed to make adjustments.

“We had calculated next year’s budget based on $50 per barrel. This is a very optimistic valuation today. Now it’s already $38. That’s why we will have to correct something there,” Putin said at his annual news conference.

He said the peak of the economic crisis in Russia had passed but the government’s forecasts for 0.7 percent economic growth in 2016 and 1.9 percent growth in 2017 were based on assumptions the oil price would be $50 per barrel.

via CNBC

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza