The recent sharp falls in the oil price require further adjustments to asset values around the world. Oil was in most peoples forecasts and commentaries at about $110 a barrel earlier this year, but is now selling for under $70. At these levels the Russian economy is struggling badly, as evidenced by the falls in the rouble. Russia was already one of the worlds cheapest stock markets in terms of the relationship between share prices, recent past profits and dividends. But now it faces big falls in revenue, profit, dividend and taxpaying power. When you adjust for all that it does not look so good, and it is still too difficult to say where it might end up.
Posted on: Sat, 06 Dec 2014 13:56:29 +0000
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