Russian Oil Producers Threaten to Slow Production

Russia’s deputy prime minister Arkady Dvorkovich said low prices have caused reduction in investment and could soon lead to decline in output.

“It’s quite possible that if oil prices remain at the low levels for long, oil production could decline, as had been the case before,” Dvorkovich told journalists in Moscow, according to Russia’s state news agency.

Russia has been hit hard by the oil market turmoil and Western sanctions imposed on Moscow over its role in Ukraine’s crisis. It is now experiencing the worst economic downturn in years — the economy is expected to shrink by 3.4% this year. Around half of Russian government revenue comes from the oil and gas industry.

via CNN

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza