Oils Fall Adds to Sanctions Pain for Russian Economy

The video discusses the impact of falling oil prices on the Russian economy, highlighting how different oil price scenarios could affect Russia's budget deficit. It uses data from Spear Bank to show that an average oil price of $90 per barrel would result in a 1.2% GDP deficit. The video also explores the varying costs of oil extraction in different regions and the implications for global oil markets.

What is the main focus of the chart discussed in the video?

• The effect of oil prices on the stock market

• The relationship between oil prices and inflation

• How different oil price scenarios affect Russia's budget

• The impact of oil prices on global warming

According to the data from Spear Bank, what would be the budget deficit for Russia with an average oil price of $90 per barrel?

• 3.0% of GDP

• 0.5% of GDP

• 1.2% of GDP

• 2.5% of GDP

What does the right axis of the chart represent?

• Exchange rates

• Oil production levels

• Inflation rates

• Budget balance as a percentage of GDP

Why is the minimum oil price critical for Russia?

• It determines the global oil supply

• It affects Russia's ability to balance its budget

• It influences the stock market

• It impacts global warming

How do oil extraction costs vary?

• They are determined by government policies

• They depend solely on the technology used

• They vary significantly by location and crude grade

• They are the same across all regions