Oil. Down. Again .. Lowest for 5 years or more, no prospect of recovery. The detail in the IEA forecast is truly eyewatering. They are forecasting a near 25% drop in daily demand for oil in 2015. With Russias production costs close to $100/barrel every gallon they sell costs them money. Of course the Rouble is weak as well - prices for Russian government debt are plummeting (or the yield is rising, if you prefer). Medium term rates are now close to 15%, indicating further domestic interest rate rises are near guaranteed, further fuelling inflation. Russian GDP and trade balance figures were due to be announced today, but for some reason have been withheld thus far. Maybe they needed a little cosmetic improvement before release?
Posted on: Fri, 12 Dec 2014 15:15:00 +0000
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