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Russia plans new measures to stabilise the rouble


The price of oil fall greatly in recent months and right now the price is lower than 70 dollars. For  Russia, a country mainly depend on oil export, it is a bad news.

On Tuesday, one US dollar can buy 79 Rouble. To solve this problem, Russian ask banks to raise the interests up to 17%. The market reflects quickly, today one US dollar can only buy 62 Rouble. However, high interest rate can not solve the problem in long run. The weakness in manufacturing industry and monopolistic economy are the inside problem of Russian economics.

What’s more, US President Barack Obama is expected to sign legislation this week authorising new economic sanctions on Russia.

When currency devalue quickly, it will cause inflation and panic in the society. It is interesting to say what kind of methods Russian government will do to make the economic better.


Why the oil price is falling

We all know that oil price is partly determined by actual supply and demand, and partly by expectation. 

The Organisation of Petroleum Exporting Countries(OPEC), which controls nearly 40% of the world market, failed to reach agreement on production curbs, sending the price tumbling. we learned in class that OPEC works as cartels to realize the most benefit for every member. However, this time, the Saudis and their Gulf allies have decided not to sacrifice their own market share to restore the price, which is one one of the reason why the price of oil keep go low. This article list four main reason what cause the  oil price down. 

By the way I want to talk a little bit more about shale gas and other new energy. New energy rather than oil play an important role which cause the fall of oil price. According to supply and demand, when the price of oil is too high, people will try to find something cheap to instead oil and right now in PA shale gas has already used and take huge percent in market.


Oil’s price change and influence


According to demand and supply, the price of crude oil go down will cause the demand of oil goes up.  Industries which need lots of oil can reduce their costs and make more profits.

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