Research On International Oil Price And Its Influence On Russian Economy

Oil is one of the rare resources that cannot be substituted by another product.Until nowadays it is impossible to find an alternative energy resource,which were able to use in different types of industries.Oil has been used since ancient times;and even now it is important across society,including economy,politics and technologyThroughout the first half of 2008,oil regularly reached record high prices.In 2012 worlds oil price reached a maximum with a highest recorded price per barrel $109,45.However,in a second half of 2013 words oil price has fallen below the $100,plummeting below $50 in 2015.In 2016 words oil price fall again and reached a lowest price over the last years $40,6 per barrel.Global oil prices have generally trended downward since 2014.For Russia this was very harmful moment,as at the same time the main themes for the Russian economy was the sanctions impact(after Crimea annexation).Brent crude benchmark fell down to US$ 37.89 per barrel from US$ 56.42.However,the world oil market was still characterized by supply exceeding demand.Oil prices cause strong influence on countries' economies.According to the modern researches nowadays there are variety of countries which economy somehow depends on oil.Russia has one of the largest amount of oil reserves and Russia is one of biggest oil exporters.Country's oil reserves totaled 87.2 billion barrels in 2013,which makes up around 5.2 percent of the world's total proven oil assets.According to official Russian's government statistics,few years ago,in 2015,despite the tough economic situation inside the country,Russia became the largest oil producer,with incredible high oil extraction indicator – almost 10.9 million barrels per day.Thus,Russia became the world's top oil producer in 2015.According to official information of Russian Ministry of Energy,in the beginning of 2015,the country was the world's second largest producer,after Saudi Arabia(with 12% of total global reduction).These facts explain the why the oil industry is one of the leading industries in the country.According to analysis the biggest part of country's GDP and budget depends on the revenue from natural resources.Country possess a rich variety of natural resources;the main income comes from gas.However,oil trade also plays an important part in international trade and economy,as can be seen,recently Russia signed new contracts with Europe and China.After this the volume of exported oil increased.It means that in a future oil trade increase its part in country's trade.Possession of natural resources is not only a blessing for the country,because at the same time without proper management natural resources can damage the counties future.Economy might become dependent on the trade,and it makes a country valuable in political and economic aspects.During 2014-2015 strong fluctuation of words oil prices cause strong influence on Russian trade,and total export of oil reduced dramatically.Some experts claimed that the biggest harm to the countries' economy was caused by changes of world's oil price.However,there are not many researches that could prove a fact of dependence between world's oil price on Russian economy.This research will show if the country's economy depends on world's oil prices,moreover it will show how strong is a dependence.