Support The Moscow Times!

Oil Prices Near Seven-Year Low Add to Ruble's Woes

The Russian ruble reacted to troubled oil prices by extending its losing streak. Drpepperscott230 / Pixabay

Global oil prices are nearing a seven-year low, with the benchmark Brent crude and the American WTI mix sliding 4 percent to $41.23 a barrel and 5 percent to $38.08 a barrel respectively on Monday, the Vedomosti newspaper reported.

Both prices were drifting toward the historically low levels recorded in late 2008 and early 2009, causing a surge in hedge funds' oil shorts, the report added.

Analysts attributed the downward slide to persistent excess supply, partly explained by the failure by the oil cartel OPEC to agree on lowering extraction levels, the lifting of trade sanctions against major producer Iran, and continuously high U.S. exports — with a potential oil boom brewing in the Gulf of Mexico set to add to the results of the country's “shale revolution,” Vedomosti wrote in a separate article published on Tuesday.

The Russian ruble reacted to troubled oil prices by extending its losing streak, with Raffeisenbank analyst Maria Pomelnikova quoting the need to pay off a portion of the country's foreign-currency loans in December as likely to increase downward pressure on the currency, the newspaper reported Monday.

… we have a small favor to ask.

As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just 2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

Continue

Read more