An abrupt crash of oil prices resembles a financial scam, according to prominent Russian economist Mikhail Delyagin.
The expert noted that selling oil in these circumstances is equivalent to burning bonds. Surviving will require immediate action, reports Tsargrad TV citing Mikhail Delyagin.
Delyagin stressed that the current oil price crash is unprecedented. The economist reminded that oil suppliers have to pay significant amounts of money for their product to be bought. For example, the WTI brand dropped to minus $39 while Brent costs $25.9 per barrel.
The economist stressed that these events resemble a financial scam. There was no halt in trading in the stock exchange. Still, if futures lose more than 15% in price, the trading may be suspended. Delyagin believes that financial capital could hit producers today. Giving away oil and adding money to it is more profitable than shutting down oil wells.