Norweigan currency impacted by falling Brent Crude prices

Global Business

Although Brent Crude oil prices bounced back to above $50 a barrel today, the commodity touched a five-year low earlier in the week. A dip in Brent crude, which is extracted from the North Sea, will likely impact Norway’s economy. CCTV’s Zhang He reported this story from Oslo, Norway.

Norweigan currency impacted by falling Brent Crude prices

Although Brent Crude oil prices bounced back to above $50 a barrel today, the commodity touched a five-year low earlier in the week. A dip in Brent crude, which is extracted from the North Sea, will likely impact Norway’s economy. CCTV’s Zhang He reported this story from Oslo, Norway.

Norwegians used to love shopping in Sweden because prices are cheaper. But as oil prices drop, the situation has changed.

Like the Russian rouble, the Norwegian krone is diving with falling oil prices in recent months, nearly falling to parity with the Swedish krone.

As the biggest oil producer in west Europe, oil and gas generates almost a quarter of Norway’s gross domestic product.

In December, the central bank surprisingly cut its interest rates to prevent economic slowdown after growth prospects were weakened and unemployment rose.

As the price of Brent crude dipped below $50 per barrel this week, speculation is growing that Norway will soon cut its rate again.

“Of course, Norway is one of the countries suffering from oil price drop, which is very fair, because we have been benefiting so much from the oil price increase of the past few years. The point is that we can tolerate some of the suffering, we should also use this occasion to adapt, to become less oil dependent to do other things.” Oystein Noreng, professor emeritus of BI Norwegian Business School said.


Scotiabank currency expert Camilla Sutton impact of oil prices on Europe

CCTV America interviewed Camilla Sutton, a currency expert at Scotiabank, about the impact falling oil prices will have on Norway and the rest of Europe.

Scotiabank currency expert Camilla Sutton impact of oil prices on Europe

CCTV America interviewed Camilla Sutton, a currency expert at Scotiabank, about the impact falling oil prices will have on Norway and the rest of Europe.