Global oil glut leaves Kazakhstan reeling

Many struggling to make ends meet in main city of Central Asian nation whose economy is heavily dependent on oil.

by

    Almaty - The impact of the falling oil prices is being felt globally. The price of US crude fell below $27 a barrel last month amid a global glut in oil supplies that seems to be getting worse.

    That is the lowest price since May 2003 and a far cry from the $100-a-barrel it fetched in the summer of 2014.

    Kazakhstan is Central Asia's richest nation and its economy is dependent heavily on oil. After Russia, it is the largest oil producer among former Soviet states.

    The situation in Kazakhstan is no better than it is in other oil-producing countries. In the city of Almaty, many people are struggling to make ends meet.

    "The suppliers and the landlords are raising prices, and the customers are spending less," Nailya Kaltayeva, a restaurant owner, told Al Jazeera.

    "These are two problems we're having to deal with at the same time."

    But the president's office is assuring the public it is doing everything possible to "stabilise the situation".

    "Our budget has been cut by 40 percent," Dauren Abayev, adviser to President Nursultan Nazarbayev, said.

    "We understand the difficulties our citizens are facing and are taking every action to stabilise the situation."

    Winners and losers in the oil crisis

    SOURCE: Al Jazeera


    YOU MIGHT ALSO LIKE

    'We scoured for days without sleeping, just clothes on our backs'

    'We scoured for days without sleeping, just clothes on our backs'

    The Philippines’ Typhoon Haiyan was the strongest storm ever to make landfall. Five years on, we revisit this story.

    How Moscow lost Riyadh in 1938

    How Moscow lost Riyadh in 1938

    Russian-Saudi relations could be very different today, if Stalin hadn't killed the Soviet ambassador to Saudi Arabia.

    Unification: Saladin and the Fall of Jerusalem

    Unification: Saladin and the Fall of Jerusalem

    We explore how Salah Ed-Din unified the Muslim states and recaptured the holy city of Jerusalem from the crusaders.