STAVROPOL (Sputnik) – The global slump in oil prices is linked to the overproduction of crude, as well as the slowing down of China’s markets and its inability to use the oil, Russian President Vladimir Putin said Monday.
"They [China] have issues at the moment, their rate of growth is seriously suffering. Because of this, in relation to the world economy is shrinking, this is what the oil price per barrel is linked to – due to the overproduction of this fuel it is not consumed by today’s economy the way economists thought of before," Putin replied to a suggestion to develop the Russian business using the example of China.
The global oil prices plunged from $115 per barrel to less than $30 per barrel between June 2014 and January 2016, hitting the lowest levels since 2003, mostly because of a prolonged global oversupply and low demand.
Recent turbulence in the Chinese stock market has caused a knock-on effect across the world. China's decision to suspend trading earlier this month was followed by Wall Street stocks sliding by one percent and European stock markets slumping by two percent.
