Rid of oil: how falling prices will affect the Russian economy

Oil prices just over a month fell to $20, causing panic and confusion in the market. RBC understood what was happening in the oil market and how it threatens Russia

Photo: Andrey Rudakov / Bloomberg

What happened?

Yesterday, 13 November, the world prices for oil have fallen approximately 7% to levels of $55 (WTI) and $65 per barrel (North sea Brent). Futures WTI it was the biggest one-day drop in percentage from September 2015, futures Brent — July 2018 (July 11, quotations Brent have fallen further).

  • Both oil benchmarks have lost $20 since the beginning of October. As a percentage of Brent crude is now at 23% below the October peak, WTI rose by 26% lower. This means that technically the oil has entered a bearish trend (down 20% relative to the recent highs).

  • Oil prices have lost all growth, accumulated since the beginning of 2018: futures Brent traded 1% below the level of the beginning of the year, futures WTI rose by 7% lower (at 17:00 GMT).

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