Oil prices have collapsed

The cost of a barrel of Brent oil fell below $60 for the first time since May and reached $59.96. Bloomberg writes about this, noting that this indicator can be considered a key level.

Journalists report that supply on the market continues to exceed demand - this could lead to a continued fall in world oil prices next year. The cost of other brands of oil is even lower than Brent, for example, West Texas Intermediate costs about $56 per barrel.

Prices for Russian oil are now the lowest since the Russian invasion of Ukraine began, Bloomberg notes . Today, Russian oil exporters receive an average of just over $40 per barrel of oil shipped from the Kozmino port in Nakhodka and from terminals on the Baltic and Black Seas.

These figures are almost a third lower than three months earlier—Russian oil prices fell by 28%. The discount widened both against the backdrop of a general fall in world oil prices and due to sanctions imposed by the United States against Lukoil and Rosneft.

The decline in world oil prices is also due to traders’ hopes for an end to the war between Russia and Ukraine, Bloomberg notes. They suggest that the end of the conflict could lead to the lifting of restrictions on Russian oil exports. This, according to traders, will lead to an increase in supply in an already oversaturated market.

In the meantime, the White House has managed to achieve a reduction in purchases of Russian oil from its two largest buyers - China and India. Thus, New Delhi expects imports from Russia in the amount of 800 thousand barrels per day this month, which is significantly lower than the November figures. A Chinese refinery recently purchased a shipment of Russian crude oil at the largest discount in 2025.

This, according to Bloomberg, will lead to an even greater slowdown in the Russian economy, since oil and gas revenues account for about a quarter of the country's state budget.

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