Revenues from Russia's largest oil tax seen doubling in March on global price rally

MOSCOW, March 12 (Reuters) - Proceeds from Russia's mineral extraction tax for crude oil production, its largest tax item, may almost double in March due to the global price rally provoked by the conflict in the Middle East, Reuters calculations showed on Thursday.

Global oil benchmarks surged on Monday to a session high above $119 a barrel, their highest since June 2022, as supply cuts by Saudi Arabia and other producers stoked fears of major disruptions to global supplies.

Russia, the world's second-largest oil exporter, is expected to benefit from the surge in the price of crude, which together with natural gas, accounts for around a quarter of its state budget proceeds.

According to Reuters calculations, the mineral extraction tax for oil could generate some 590 billion roubles ($7.43 billion) this month if prices remain near current levels, up from an expected 300 billion roubles last month and 314 billion roubles in January.

On Thursday, oil prices rose sharply as Iran stepped up attacks on oil and transport facilities across the Middle East, fuelling concerns of a prolonged conflict and potential disruptions to oil flows through the Strait of Hormuz.

Brent futures LCOc1 climbed $6.41, or 7%, to $98.45 a barrel by 1235 GMT on Thursday, having hit $100 per barrel in earlier trading, while U.S. West Texas Intermediate crude CLc1 was up $5.98, or 6.85%, at $93.23.

($1 = 79.3955 roubles)