Market Leader reports that Brent oil futures for March deliver are trading aroid $29/b - $29,11/b to be more exact. The same futures on WTI oil are trading at $29,64/b.
As you probably know, declining oil prices are seriously affection Russia’s economy, thereby leaving no chances for the Russian currency and making it devalue slowly but surely. On January 15, the Russian Ruble crossed the 77 line against the U.S. Dollar for the first time since December 2014. At the same time, the EURURUB exchange rate exceeded 85. Crude oil prices set new 13-year lows by going below $30 per barrel, Masterforex-V Academy reports.
Over the past trading week, RTS index in Moscow went some 6% down to set a new major low – the lowest point since late 2014. At he same time, another major Russian index called MICEX lost 3,37% more. The reason for such a major daily crash shown by Russian stock indices boils own to the following:
Russian traders were hoping that the global market of crude oil was going to stabilize in early January 2016. Russian markets had seen a pretty long holiday season and now when everyone is back, the market start giving up as more and more traders become aware of the fact that crude oil prices are not coming back, at least in the near future. You see, there are no fundamentals to back that recovery. The Chinese stock market is still going down amid an economic slowdown, the U.S. market is also reluctant to start another bullish momentum, Europe has got its own challenges as well. That is why w can see a sellout in most financial markets. Traders have been reducing their exposure and chasing out since late 2015.
