Cheap oil poses a threat to the global economy

The World Bank has lowered its recent forecasts of tangible economic growth without providing any reason to raise fuel prices. Meanwhile, oil fell a little more this morning, reaching another low.

Since June of this year, oil prices have fallen by almost 60% to the lowest level in the last 6 years, and this adversely affected the world economy, especially the condition of countries that depend on commodity trade. Russia turned out to be one of the main victims of cheap oil, in connection with which Finance Minister Anton Siluanov called on Wednesday to reduce the country's spending by 10% in all areas except defense.

Europe also found itself on a shaky ground, despite a plan to stimulate the economy of the European Central Bank.

“We have huge supplies of oil amid slowing global oil demand,” said Myrto Sokou, senior analyst at Sucden Financial. He added that all that remains is to wait and see how far the fall can go. writes AmericaRu.com