Heroes of Ukraine

«Market Leader» - news and previews making you rich.

Thursday, 20 June 22:26 (GMT -05:00)



Stock and commodities markets

Russia Is Still Dependent On Crude Oil


Is the Russian economy getting rid of its dependency on crude oil? Even though Russian politicians say that’s really the case, famous Russian economist Igor Nikolaev tried to find out the truth backed by figures.

 

In his blog, the economist wrote that there are only few factors testifying in favor of quitting the commodity-based economic model. One of the key ones of them is the share of oil products in Russia’s export. According to Rosstat, this was 61,6% as of the first 8 months of the year.

For the sake of comparison, this is much less than the 2013 record of 67,6% but more than over the last 2 years – 58,8% and 53,5% in 2015 and 2016 respectively. On top of that, the current figures are not that different from the average figures taken for the period of 2003 – 2015, which 62,2%.

 

Those figures show that there’s been no actual progress so far. This means that the Russian economy is still heavily dependent on the export of crude oil and oil products.

 

The share of refined products like LNG and oil products in Russia’s export has increased over the last few years. However, this hasn’t had much impact on the bigger picture – the Russian economy still relies on the export of crude oil and natural gas.

 

Also, it's necessary to keep in mind some other factors. For example, the share of oil-and-gas investments in the federal budget income plunged below 40% in 2016. In 2015, this was 51,3%. Any progress? The whole point is that global oil prices used to be relatively low. The same thing happened in 2009. Back then, the share also plunged below 40% but when the oil market recovered, the share recovered with it. That’s why it’s safe to say that after the current oil price rally above $60/b the share of income from the export of crude oil in the federal budget will grow this year.

 

At the same time, this means that it’s only thanks to higher oil prices and bigger oil export profits that Russia will manage to keep its federal budget deficit as little as slightly over 2% GDP.

 

You are free to discuss this article here:   forum for traders and investors

 

Add to blog
Got a question? – Ask it here »
 

Masterforex-V Names Biggest Stock Exchanges

Stock exchanges have been operating worldwide for many decades. They are specific financial institutions  or marketplaces that operate to let people and companies invet in various stocks and other securities. Those are the stocks issued by various companies representing various industries - from mining to services. These days, you can invest in stocks, indexes, bonds, options, and other securities.
 
Publication date: 17 May 11:57 AM

Masterforex-V Names SSE's 20 Biggest Companies

There are several cities in the world that can be called centers of business and financial activity. Shanghai, China, is definitely one of them. This is the home to China's biggest stick exchange. Shanghai Stock Exchange (or SSE for short) is the world's 4th biggest stock exchange in terms of market cap and number one in terms of the pace of growth.

Publication date: 17 May 11:23 AM

Masterforex-V Experts Call Hong Kong Exchange Financial World's Biggest Provoker

At the current stange of market relations, one can easily define the spots of the biggest economic and financial growth. Apparently, stock exchanges are on the list.On the one hand, the constant turnover of financial assets is a good thing, so is the opportunity to buy or salle a stock without major effort. On the other hand, internatinal experts have been signaling potential threats for quite a long time. At Masterforex-V Academy, they think that the major provoker in the financial world is Hong Kong Stock Exchange (SEHK). By the way, this is the world's 6th biggest stock exchange in terms of market capitalization. Apparently, this kind of significance in the financial world is the key reason for those potential threats.

Publication date: 01 May 01:08 AM

Will U.S. Stock Market Grow This Year?

The American stock market has reached another crucial strange. The forthcoming macroeconomic stats may trigger a major move in any of the 2 directions. International experts say that the future market reaction will depend on a number of macroeconomic stats as well as several events. However, the current bias seems to be bullish since at this point, there are no major reasons to expect another stock market crash within the next 12-18 months.
Publication date: 27 January 07:56 AM

Experts Anticipate U.S. Stock Market Crash This Winter

As you probably know, the U.S. stock market has been in the red zone over the last few weeks. International experts assume that this downtrend is likely to continue in the first quarter of 2019. The key reason is the fact that really huge volumes of risky assets are under the risk of forced sales, Market leader reports, with reference to Forbes.

Publication date: 04 January 04:13 AM

Why did crude oil crash by almost 11% last week?

The past trading week was a nightmare for the global market of crude oil, with a major price crash. In particular, Brent oil dropped in value all the way down to the lowest price since July 2017. This was a dive below 53 dollars per barrel. Since then, international experts have been trying to figure out the reason for that.
Publication date: 26 December 09:40 AM

Russia and OPEC agreed to cut down on their oil production in 2019

As you probably know, the participants of the latest OPEC summit agreed to cut down on their oil production next year. This triggered a temporary price rally in the international market of crude oil.
Publication date: 23 December 02:01 AM

OPEC and Saudis Are Planning To Back Oil Prices

International experts and governments have been closely watching the drama going on in the international market of crude oil. According to The Wall Street Journal, Saudi Arabia is going to quit the overproduction of crude oil for the sake of preventing oil prices from going down any further and, if possible, backing their new growth.
Publication date: 05 December 11:00 AM

Investing in World's Most Secure and Profitable Stocks in NordFX

Publication date: 02 December 09:32 AM

Golden Medium: Russia Isn't Concerned About Decreasing Oil Prices

Market Leader reports that the global market of rude oil has been seen a prolonged downtrend after a pretty strong rally seen over a couple of months in a row. Not so long ago, a barrel of Brent oil used to cost 86 dollars. At this point, it costs just 70 dollars. Still, the Russian authorities don't seem to be concerned about this price drop at all. Experts say the see no reason to worry about the situation.
Publication date: 12 November 11:57 AM