Russian currency is becoming uncontrollably cheaper due to oil crisis
For the first time in a long while, the dollar exchange rate on the International Forex market exceeded the mark of 75 rubles, while the euro rose to 85 rubles. The cost of futures for Brent oil on the London ICE exchange fell to $ 31.02 per barrel, TASS reports.
The American markets opened with a collapse, Meduza informs. The S&P 500 fell 6.9%, the Dow Jones went down by 7%. This happened in the first few minutes of the auction.
Prices in retail stores will increase as a result of higher prices for bulk purchases, according to the Association of Retail Companies. It includes such major market players as Auchan, Dixy, Lenta, Magnit, METRO, Alphabet of Taste, “BILLA”, “M-Video”, “OBI” and others. Moreover, the Association claims that 95-100% of the goods in stores are of Russian origin.
This should reassure Russian consumers, but the production of Russian goods in most cases is associated with exports – machine tools, machines, parts. Thus, prices for Russian goods will also go up.
A sharp change in oil prices occurred as a result of disruption of discussions on additional reductions in oil production by OPEC+ countries. Russia agreed to reduce production by 1.7 million barrels per day, but this restriction will only remain in force until the end of March.
Rosneft representatives noted that the deal was not in Russia’s interests (Russian capital interests, that is), since the parties to the agreement lost opportunities for the development in the industry, namely, they received less net profit.
A number of experts believe that what happened is another round of a price war, this time against Russia, the country that receives the main income from the oil industry. Indeed, we will suffer from the fact that Russian large oil capital will receive less profit, looking at the price tags in the nearest supermarket.
The US embargo against China, then the coronavirus that crippled the markets of countries that are the main international players … Now there is a new round of the economic crisis, perhaps planned, but in any case extremely dangerous for ordinary people.