15 октября 2014 18:55

Oil prices and currency rates approach alarming levels for Kazakhstan

©REUTERS

The current situation on the oil market is critical for many countries exporting crude, including Kazakhstan, Tengrinews correspondent cites Anna Kokoreva, a financial analyst from Alpari.

Oil prices are continually sliding down. Brent has hit through the floor of $84 per barrel and is now sold at $83.37, which is a dramatic decline against the June high of $112 per barrel.

Saudi Arabia declared that it was not intending on cutting its oil production. Kuwait and Iran also made it clear they were going to keep the current production rate. In the meanwhile, the United States have sharply increased their output thanks to the shale boom, making the country a global oil production leader. All these contribution to the oil prices avalanche.

Kokoreva said that each country had its own critical point in term of oil prices, but most of the countries planned their budgets with the corridor of $80 to $90 per barrel in mind.

The existing trends might force the National Bank of Kazakhstan to depreciate the tenge against the dollar by about 2-3%, Kokoreva said.

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