Oil prices at a five year low, Russia in focus…..

In the commodity markets, the price of oil continues to move lower putting further pressure on the energy reliant economies hurt by a vicious cycle of declining oil revenues, currency devaluation and higher interest rates. Some form of government debt default by Venezuela is seen as increasingly likely but it is the energy reliant Russian economy that remains a focal point, given its economic size and fractious relationship with the West. Russian government bond yields are at the highest levels in five years with the 10-year government bond yield trading at 12.55%. Their central bank is now in firefighting mode to prevent an all-out rout in the Ruble, which has lost 37% against the US dollar since the end of June