Dec 25 2014
Russia does not deserve a market share of oil production.
Here is an interesting theory, I am not sure anyone at the White House is clever enough to have planned it but this is how it is playing out.
Perhaps the US and the Saudis are plotting the downfall of Russia with low oil prices. The Saudis want Russia out of the Midde East as they help arch rival Iran who helps client state Syria, all enemies of the Saudis. Meanwhile the US would like Russia out of the Ukraine but does not want a physical war over it. The solution then is to collapse the Russian economy via lower oil prices. Neither the US nor the Saudis have to fire a shot, both are highly efficient producers of oil, and Russia is not, as noted in the linked article. And whether planned or not, ths is working, tumbling the value of the ruble, forcing interest rates up in Russia to 17%, and lowering export income by hefty double digits.
And now, for the bonus round. The US President can claim he helped lower gasoline prices (Presidents always claim credit for anything good whether they were responsible or not). And with plenty of supply on hand, he can more boldly deny the Keystone Pipeline, whcih is precisely what he did before leaving for vacation.
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