Around the world (Russia, economy, crude oil)

Economic crisis becomes the main topic at public debate

by Nina Achmatova

Prime Minister Medvedev tells Russians to prepare for the “worst scenario” as the country’s economy follows the downward spiral of oil prices. Government spending will be cut by 10 per cent. Wages are in arrears. Yet, experts do not expect any mass protest for now.

Moscow (AsiaNews) – Russian government officials spoke this week at an economic forum in Moscow about Russia’s worsening economic outlook, warning the population to prepare for the “worst scenario” as low oil prices continue to sink the country’s energy-dependent economy.

Speaking at the annual Gaidar Forum in Moscow, Russian Finance Minister Anton Siluanov warned that oil prices might continue to drop and that country might see a repeat of the 1998 financial crisis. He pointed out that Russia needs oil to be US$ 82 whilst at present it hovers around US$ 30. [full text]

Oil falls below 30 dollars a barrel as world’s oligarchies tremble

Brent crude rebounds after a few transactions to $ 30.22, but the price continues to fall for 15 months in a row. Prices hit by the decreasing energy demand in China and international geopolitical tensions, but real problem is the glut of oil and continuing decline in demand. Moscow announces a review of the budget for 2016; Washington relies on offshore drilling. Saudi Arabia is most likely of all and intervene. The only survivor, Iran.

Rome (AsiaNews) - For the first time since April 2004, this morning the price of oil fell below 30 dollars a barrel. The drop lasted very little: the "brent crude" - the title used as an indicator for crude oil in the international markets – rebounded from 29.96 to $ 30.22 in a few transactions. However, the record low is part of a trend that has been going on for 15 months: during this period, the price of oil fell by 70%.

Experts agree the decline will be permanent. Peter Pulikkan, industry analyst for Bloomberg Energy Intelligence, believes the threshold of $ 30 a "psychologically key for investors. This requires a total rethinking from players in this market. In 2015, crude oil has as its mantra 'less for more time'. Now we are in the phase of even 'less, for even more time.' " [full text]