0
0
0Falling Oil Prices Drag Ruble Down
- New Europe Investor
- January 06, 2016
With global oil prices dropping further, Russia’s currency has begun to fall in value again.
Today, crude oil prices dropped to a low not seen since 2004, at $34.65. Russia’s currency has fallen in value to the euro also.
It is currently 80 rubles to the euro. Two years ago, it was 45 rubles to the euro.
The instability between Saudi Arabia and Iran has led to the belief that negotiations between the two countries on restricting oil supply is unlikely. Many oil producers (including Russia), are currently flooding the market seeking further revenues to compensate for the lower prices, thus suppressing the market price further.
Other factors such as a slow down of the Chinese economy are impacting the demand side.
The effect of all of this on the commodity dependent, Russian economy is huge. The decline in the ruble is just another symptom of this.
Related Articles
-
Estonia’s Lux Express to Open Routes in Russia
Estonia’s Lux Express to Open Routes in Russia
April 22, 2017Estonian bus operator Lux Express is set to begin operating regular domestic services in ...
-
British Taxi Service to Open in Moscow to Rival Uber
British Taxi Service to Open in Moscow to Rival Uber
April 10, 2017Competition in the Moscow taxi market is set to increase after an alliance of ride-hailing ...
-
Russia Proposes Currency Devaluation
Russia Proposes Currency Devaluation
February 05, 2017The Russian Finance Ministry has reportedly proposed devaluing the ruble by as much as 10% in ...
-
Russia Sells 19.5% Stake in Rosneft
Russia Sells 19.5% Stake in Rosneft
December 11, 2016Russian oil giant, Rosneft has sold a 19.5% stake to Glencore and The Qatari Sovereign Wealth ...
-
Poland’s Shale Dream Officially Ends
Poland’s Shale Dream Officially Ends
October 23, 2016Polish energy companies, PGNiG and PKN Orlen have finally given up their hopes of extracting ...
