HOW DOES OIL PRICE DECLINE AFFECT ON THE RUSSIAN MARKET?

NEW “BLACK MONDAY”. HOW WILL A FALL IN OIL PRICES AFFECT THE RUSSIAN MARKET?

Brent oillost in price almost a third. At international bidding in the morning, the dollar reached 75 rubles and the euro 86. The reason is the gap between OPEC and Russia in a deal to reduce production, which, since 2016, has maintained the balance of supply and demand. After that, Saudi Arabia lowered the price of its oil for importers to a record for the last 20 years. As a result, the cost of Brent crude oil futures reduced to $ 31.

Due to the holidays, no auctions were held on the Russian market on Monday, so tomorrow the negative ones that will affect global markets will be played out here.
According to analysts, the decline will bebe observed on a broad front and will affect not only shares of oil companies. The dollar exchange rate is expected to be in the range of 70-75 dollars, but may reach 80.
Subsequently, on the oil and foreign exchange marketsvolatility will continue, and there will also be a noticeable outflow of investors from risky assets. As a result, the index on the Moscow Exchange may decline by 4-5 percent by the close of trading.

This is undoubtedly a price war in the oil market, the consequences of which can surpass even the most negative forecasts published by experts.

What do you think about this