New Delhi:
Russia, whose economy is heavily dependent on oil, energy, and mineral exports to the world, is staring at a crisis, should oil prices continue to plummet the way they are currently. Moscow has sounded the alarm as oil prices dropped to as low as $60 per barrel on Monday. Russia’s Urals Oil dipped further – nearly reaching $50 per barrel as the oil markets faced extreme turbulence.
The reason – Donald Trump’s reciprocal tariffs, which have sent global markets, including that of oil, into a free fall. To add to the misery, China, the world’s second-largest economy, also announced retaliatory measures to target Washington.
The oil and gas sector is the largest contributor of cash flow in the Russian federal budget. In March alone, the revenue from the key sector fell by more than 17 per cent compared to the same month a year ago. This is before April’s unending downward spiral after Trump’s tariff order.
Responding to a question on falling oil prices and its impact on the Russian economy, Kremlin spokesman Dmitry Peskov said, “Of course this indicator is very important for filling the budget. Our authorities are very closely monitoring the situation, which is currently extremely turbulent, tense, and emotionally charged. We aim to take measures in order to minimise the consequences of this economic storm.”
According to a Bloomberg report, on Friday, Russia’s Urals oil was trading at a low of $52 per barrel at Primorsk, a port in the Baltic Sea . It fell even further on Monday, inching its way towards the $50 per barrel mark.
Trillions of dollars have been lost across global markets in under 72 hours and investors are seriously concerned of a possible recession in the making.
WTI Crude or Texas crude, which is the US benchmark for American oil, is also at a low of $60 per barrel, while the Brent Crude prices internationally fell to $64 per barrel.
Meanwhile, President Trump doubled down on his stance, saying, “Oil prices are down…there is no Inflation”. He also outrightly rejected economists’ concerns of a possible recession.
In a post on his social media platform Truth Social, President Trump wrote, “Oil prices are down, interest rates are down (the slow moving Fed should cut rates!), food prices are down, there is NO INFLATION, and the long time abused USA is bringing in Billions of Dollars a week from the abusing countries on Tariffs that are already in place.”
He then singled out China, saying it is them who really are to blame, along with past leaders in the US, who “allowed for this to happen”. On Truth Social, he wrote, “This is despite the fact that the biggest abuser of them all, China, whose markets are crashing, just raised its Tariffs by 34%, on top of its long term ridiculously high Tariffs (Plus!), not acknowledging my warning for abusing countries not to retaliate. They’ve made enough, for decades, taking advantage of the Good OL’ USA! Our past “leaders” are to blame for allowing this, and so much else, to happen to our Country. MAKE AMERICA GREAT AGAIN!”
Donald Trump, had on Wednesday (US time-zone), announced reciprocal tariffs on nations that tariff the US, in addition to a 10 per cent tariff on the entire world. Since then global stock markets are experiencing an irrecoverable free fall, as are the oil or crude markets, as well as commodities markets.
