Russian President Putin: Global Economy Will Collapse If Oil Prices Remain At $80 Per Barrel

Russian President Putin. © RIA Novosti. Mikhail Klimentiev

Putin: Global Economy Will Collapse If Oil Prices Remain at $80 per Barrel -- RIA Novosti

MILAN, October 17 (RIA Novosti) – Russian President Vladimir Putin said Friday that world economy will collapse if oil prices remain at $80 per barrel.

Shale oil production in the United States is profitable at a price of $80 per barrel, according to Putin.

“If oil prices remain at $80 per barrel, it will lead to production collapse. Budgets of all major oil-producing countries are based on the price of little more than $80, close to $90 per barrel…” the Russia leader told reporters after the Asia-Europe Meeting (ASEM) summit in Milan.

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My Comment: Maybe for countries that are oil dependent (like Russia) are the ones who will be severely impacted by lower oil prices .... but for everyone else .... not. But in the case of Russia .... sanctions hurt but it will be lower oil prices that will severely impact the economy .... and .... not surprising .... the rating agencies are now taking note ..... Moody’s Downgrades Russia’s Credit Rating to Baa2 From Baa1 (RIA Novsoti).