Picking up where they left off on Friday, Global markets continue to be hammered by falling oil prices. As crude hits a record five year low, Katie Gregory looks at where this dramatic drop is going to be felt the most.
Plummeting energy stocks and slowing currencies...it's the last thing wavering world economies need. The increased volatility, prompted by last week's OPEC decision not to cut oil output in order to tackle falling crude prices. (SOUNDBITE) (English) JOE RUNDLE, HEAD OF TRADING, ETX CAPITAL SAYING: "It's surprising and it is causing a negative overtone and that's why we've seen commodities so badly hit today. I think all central bankers especially the euro zone wanted something there, because it's just going to add to the deflationary pressures. I think they probably will do some in the future or you're going to get some form of breakaway." The "wait and see" approach has seen commodities-based currencies take the biggest hit. Oil heavyweight Russia has seen it's rouble drop more than 4% against the dollar. Crude is the country's top export, but late last week President Vladimir Putin was putting on a brave face. (SOUNDBITE) (Russian) VLADIMIR PUTIN, RUSSIAN PRESIDENT SAYING: "The winter is ahead of us and I am confident that in the first quarter, in the middle of next year the (oil) market will find a balance." Africa is also being battered, the devaluation of Nigeria's naira knocked $40 billion off the value of its economy. That's more than the World Bank estimates Ebola will cost across the entire sub-Saharan region. Nigeria and Angola could even be pushed to call on the International Monetary Fund for assistance, if the oil price drops further. (SOUNDBITE) (English) DR AZAR JAMMINE, CHIEF ECONOMIST, ECONOMETRIX SAYING: "they are countries whose economies depend almost exclusively on their oil production and the fact that oil prices fall means that they see an almost direct reduction on their export revenues." It may be known as "black gold", but at the moment this vital commodity is losing it's shine. Brent crude has dropped around 40% since June, now below $68. No one seems to want to predict when it will stop. ENDS