Russia's rouble slides to a new multi-month low as oil prices continue to sink, with other commodity prices too caught on a downward trajectory. Joel Flynn reports.
The warm weather in Moscow a blessing for some on the streets. But little else here in the way of good news. Russia's rouble falling to five month lows, even as prices for utilities and goods remain the same or rise. Western sanctions are squeezing Muscovites and their fellow countrymen. It's the oil price though that's the real worry though. ING Chief Economist for Russia, Dmitry Polevoy. SOUNDBITE: ING Commercial Banking Chief Economist for Russia And CIS, Dmitry Polevoy, saying (English): "The continued decline in oil prices, to nearly $50 per barrel, today, is the biggest factor behind the rouble depreciation. Because that is why the rouble is trying to compensate for the weakness in oil and one of the indicators we may look at in order to assess the behaviour of the rouble is to look at the rouble-denominated oil price." It's oversupply that's bashing Brent. OPEC oil output hit new highs in July, according to a Reuters survey. But Chinese data too concerning. Manufacturing growth unexpectedly stalled last month, leaving crude on course for its weakest third-quarter performance since the financial crisis. Copper prices also crumbling on the news, hitting their lowest since July 2009. Aluminium, Zinc, Tin and Nickel all also punished by the Chinese slowdown.