As you probably know, the Russian Rubble has been weak against the US Dollar and other major currencies over the last couple of months. It seems like the Russian currency hasn't found the bottom yet amid declining oil prices. Indeed, Russia is a major oil exporter and its economy is heavily dependent on oil prices. With that said, some experts assume that 1 USD is going to cost 50 RUB by the end of 2014.
What are the near term prospects of the Russian Ruble and crude oil? Let's ask Fort Financial Services, one of the reputable Forex brokers out there.
Crude Oil: Who Makes "Black Gold" Go Down?
Since the Fed is finally done with QE3 amid higher domestic oil production, the global price of crude oil started going down a couple of month ago, Fort Financial Services reports. During the latest meeting, the Fed's FOMC decided to taper the quantitative easing to the end, thereby making international investors more interested in the American currency, simultaneously undermining the value of crude oil as an investment asset.
According to last week's official figures, the US crude oil inventories expanded by 2,05 million ballers, thereby reaching 379,6 million barrels. At the same time, the US oil production volume has boosted by 8,97 million barrels since 1983.
The average price of crude oil is expected to go below 80 dollars per barrel in the near future, the experts report. The likelihood will improve drastically if the the OPEC meting scheduled for October 27th fails to come up to expectations. Still, chances are the meeting will fail since the OPEc is not planning to make changes to production volume in the coming months. The OPEC is determined to leave the production volume unchanged for the entire 2015, according to the statement made by the Secretary of the OPEC made during the "Oil and Money" conference in London.
Meanwhile, the positive economic stats coming from the USA filed to back the prices since there are greater concerns regarding possible oversupply. Apart from that, Iraq, Iran, Kuwait and Saudi Arabia are reported to cut the price of exported oil in order to keep their own pie of the market at bay. According to Credit Suisse and Commerzbank, the oil predictions for 2015 are around 86-92.00 bbl...
Will Ruble Drop Below 50 Per 1 USD?
At this point, the Russian Ruble is trading around 44 per 1 USD, Market Leader reports. This is the second time the price is going up to 44. The first attempt was followed by a move back to 41 per 1 USD.
Meanwhile, Russia's central bank has improved the interest rate to 9,5%. Still, this effort failed to suspend the weakness of the Russian Ruble against other currencies, including the American counterpart. At this point, the price is going within the cope of a pretty wide price range between 41 and 44 per 1 USD. Most experts assume that the consolidation will continue for some time in the near future.
At this point, it is necessary to keep in mind that the market ignored the central bank's interest rate decision. This is certainly a wake-up call for a retail trader and investor. Financial markets resemble the Wild West more and more, Fort Financial Services assumes.
The experts assume that it is not enough to raise the key interest rate by 1,5% in order to reverse the decline of the RUB. The speculators have already recovered 505 of their losses and are determined to make RUB go back at least to 43.61 and 54.96 against USD and EUR respectively.
Anyway, with Fort Financial Services, you can benefit from any move in any financial market, including crude oil and the Russian Ruble. This is possible thanks to a team of true experts willing to help you in making stable profits even under uncertainty and increased volatility dominating today's financial markets.
Fort Financial Services is a perfect option far any one, from rookies to demanding professionals seeking reliability, security, flexibility, beneficial trading conditions and comfort.
