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Kremlin says falling oil prices are the result of an extremely tense economic situation worldwide

The Kremlin's spokesman stated that oil prices are an important indicator of Russia's financial state. Economic authorities are watching closely the "very tense" situation surrounding lower prices.

Oil fell by 7% Friday, as China increased tariffs on U.S. products. This escalating trade war has caused investors to increase the probability of a recession. Last week, Brent and WTI crude oil lost 10,9% and 10,6% respectively.

The federal budget of Russia receives a third its revenue from oil and gas sales.

The first-quarter revenue fell almost 10% to 2.64 trillion Russian roubles (30.59 billion dollars) due to lower oil prices globally and a stronger rouble.

Dmitry Peskov said in a daily press conference that the Kremlin's spokesman was "very closely" monitoring the current situation. The Kremlin described it as being extremely turbulent, tense, and emotionally loaded.

He attributed the turmoil to the decision of U.S. president Donald Trump to impose tariffs across the globe.

He said: "The global economy is in a very tense situation, with many negative expectations among experts and market participants."

Adding to the downward trend, the OPEC+ nation group, which includes the Organization of Petroleum Exporting Countries (OPEC) and its allies, including Russia,

Plan ahead and make a decision

For output increases.

The central bank of Russia

On Wednesday, it was reported that U.S. Tariff hikes could slow the global economy and that oil prices may be lower than expected for several years due to reduced demand.

Peskov stated that "our economic authorities are closely monitoring this situation and are doing everything possible to minimize the effects of this international storm on our economy."

(source: Reuters)