The massive slide in oil prices following last week’s OPEC decision not to cut production took a breather this morning.
Futures prices for the two main benchmarks, WTI crude and Brent crude, are up 2.8% and 2.7%, respectively. (Update: WTI finished up 4.3%, while Brent rose 3.4%.) contracts ended the day up But that’s little solace to the countries depending on high oil prices to balance their books, since the spot contracts are the cheapest they’ve been in five years.
But the long-term economic impact is less clear. Cheap oil (and its ongoing skirmishes with Ukraine) forced Russia to abandon its currency peg as the rouble tumbles, and oil-rich Nigeria’s naira is also dropping.