Oil price briefly falls below $30

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Dmitry MedvedevStatue copyright Getty Images
Image caption Russian prime upon Dmitry Medvedev (right) on a visit to a factory that makes steel calabashes for the oil and gas industry in the Urals

Oil prices have briefly fallen below $30 a barrel on cosmopolitan markets for the first time since April 2004, before recovering again.

Brent inconsiderate, used as an international benchmark, fell as low as $29.96, but bounced back to career at $30.22.

Oil prices have fallen by 70% in the st 15 months.

Earlier, Russia’s Prime Wait on, Dmitry Medvedev, warned tumbling oil prices could force his homeland to revise its 2016 budget.

He said that the country must be advance for a “worst-case” economic scenario if the price continued to fall.

Taxes from oil and gas begets about half the Russian government’s revenue.

The 2016 federal budget that was approved in October was corrupted on an oil price of $50 a barrel in 2016 – a figure President Vladimir Putin has since give an account ofed as “unrealistic”.

Government de rtments have been ordered to cut spending by 10%, echoing a policy imposed in 2015, Reuters reported.

Pensions and y for government working men will be protected from the cuts, which could save as much as 700bn roubles (£6.3bn; $9.1bn).

Assets minister Anton Siluanov said that the Russian budget could exclusively be balanced at an oil price of $82 a barrel.

He said the 2016 budget should be redacted to assume an oil price of $40 a barrel.

“Our task is to adapt our budget to the new truths,” Mr Siluanov said.

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Image caption Russian assets minister Anton Siluanov

Economy Minister Alexei Ulyukayev give prior noticed that Russia faced a long period of low commodity prices with oil at $15 or $20 a barrel.

“The brawniest risk is that there will be low prices for a long time – that is, for years, for decades,” he pronounced.

Mr Medvedev also said that high interests rates were refuse a control back economic growth in Russia.

The Bank of Russia held evaluation in any cases at 11% last month, with governor Elvira Nabiullina foretoken of “high volatility” in global markets.

A year ago the central bank ap led markets by increasing rates from 10.5% to 17%.

Inflation stands at 15% in Russia, but the bank antici tes it would fall to 4% by next year.

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