Tuesday, September 30, 2008

Plunge in oil prices

Oil plunged yesterday following DOW's 770 point decrease. Russian stock trading suspended 10 minutes into the session. Why? Fears that oil prices will fall further due to perceived threat of recession in US. Why is that a problem? Oil taxes fund 50% of Russian government. Any decrease in demand for oil will bring less money into government treasury.

Oil is heading lower. Look back to earlier posts.

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