Russia Considers Possibility Of $25 Oil Next Year
Authored byJulianne Geiger via OilPrice.com,
Russia is considering the notion that oil prices may be as low as $25 per barrel in 2020, the country’s central bank said in its new forecast published on Monday, as cited by Reuters.
Russia’s Central Bank has forecast in its macroeconomic forecast that oil could possibly hit that low due to falling demand for oil and oil products worldwide, as well as from disappointing global economic growth.
The doom and gloom scenario was just one proposed by the bank. If that risk scenario actually materializes, Russia’s inflation could increase to 7% or 8% next year, on the back of falling gross domestic product to 1.5%– 2%.
Russia is perhaps uniquely positioned to withstand low oil prices, although $25 per barrel is pretty bleak.
One of the reasons why Russia is…