• 4 minutes Pompeo: Aramco Attacks Are An "Act Of War" By Iran
  • 7 minutes Who Really Benefits From The "Iran Attacked Saudi Arabia" Narrative?
  • 11 minutes Trump Will Win In 2020
  • 15 minutes Experts review Saudi damage photos. Say Said is need to do a lot of explaining.
  • 35 mins Ethanol, the Perfect Home Remedy for A Saudi Oil Fever
  • 4 hours Hong Kong protesters appeal to Trump for support.
  • 14 hours Europe: The Cracks Are Beginning To Show
  • 16 hours Iran Vows Major War Even If US Conducts "Limited Strikes"
  • 2 hours Memorize date 05/15/2018 cause Huawei ban is the most important single event in world history after 9/11/2001.
  • 2 hours Millennials: A boil on the butt of the work ethic
  • 3 hours A little something for all you Offshore swabbies
  • 11 hours Ban Fracking? What in the World Are Democrats Thinking?
  • 16 hours LA Times: Vote Trump out in 2020 to Prevent Climate Apocalypse
  • 14 hours When Trying To Be Objective About Ethanol, Don't Include Big Oil Lies To Balance The Argument
  • 4 hours US and China are already in a full economic war and this battle for global hegemony is a little bit frightening
  • 1 hour Saudi State-of-Art Defense System looking the wrong way. MBS must fire Defense Minister. Oh, MBS is Defense Minister. Forget about it.
  • 2 hours Shale profitability
  • 1 day Yawn... Parliament Poised to Force Brexit Delay Until Jan. 31
  • 11 hours Let's shut down dissent like The Conversation in Australia
Why Oil Prices Just Fell 6%

Why Oil Prices Just Fell 6%

Oil prices fell sharply on…

Saudi Arabia Pours Cold Water On Oil Rally

Saudi Arabia Pours Cold Water On Oil Rally

After its sudden spike following…

Russia Further Depletes Reserves To Cover Budget Shortfalls

Kremlin

The Russian news agency Tass reports that the government has accessed its reserve funds for the third time this year in order to cover a shortfall in the national budget. Tass reports that this time around, the government transferred $6 billion from its reserve fund.

This latest move to tap the fund brings the amount depleted from the fund to 18 percent in August to $32.22 billion. In April and May, the Russian government pulled a total of $12 billion from the fund to cover budget deficits. In July, the International Monetary Fund stated that it expected Russia to stay in its recession due to the drop in oil prices combined with sanctions from the West over the situation in the Ukraine.

The IMF expects moderate recovery for the country in the coming year. Last week the Russian Central Bank called external conditions “favorable,” adding that the fiscal policy was showing returns, even with pressures on the country’s GNP. However, Central Bank Governor Elvira Nabiullina said the trajectory for oil, a mainstay of the Russian economy, remained uncertain.

The second half of the summer has been rocky for oil prices, which have at times dipped below $30 per barrel, then spiked at $60 before settling somewhat in the mid-$40 range.

Yesterday, Russia and Saudi Arabia issued a joint statement that the two countries would work together to stabilize the market. In that statement, Russia and Saudi Arabia said that they would need to take the stability initiative since the two countries produce 20 percent of the of world’s demand for crude.

The two nations said that there needed to be a “bilateral level” to monitor the factors that influence crude prices. A move to freeze the price of crude oil production at early 2016 levels fell apart earlier in the year, as some analysts said that that prices have recovered to a point that they would not support such an agreement.

By Lincoln Brown for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play