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Russia Questions OPEC Deal, Keeps Budget Bet on Oil at $40

  • Finance minister says oil price used for budget isn’t changing
  • Crude surged after OPEC’s deal on first output cut in 8 years
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OPEC Freeze May Raise Valuation Expectations: Foley

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Russia is sticking with an assumption that oil will average $40 a barrel in the next three years and won’t take a bait by revising its budget outlook after a preliminary agreement by OPEC on its first production cut in eight years, according to Finance Minister Anton Siluanov.

While crude is trading near $50 after Wednesday’s announcement, heading for the first September increase since 2010, “we know prices are adjusted after such statements,” Siluanov told reporters in Russia’s Black Sea resort of Sochi. The price of Russia’s main export blend Urals used to calculate the country’s budget “was and remains” at $40 a barrel, he said.