True it shouldn't be like this though. Even what the Saudis are doing to make it drop (even though I am not complaining about it) it shouldn't happen. Way to much control. But that is the way the oil companies like it, hook, line, and sinker. I just keep hoping Russia keeps pissing them off so they keep dropping it.That's the thing about oil, only one event away from sky high prices.
I don't get this. The whole reason oil prices are low right now is because Russia is making money selling to China. That is why Saudi Aruba is pissed and it's affecting our prices.Heard that these low oil prices will cost Russia 90-100 Billion dollars per year. Pretty substantial percentage of their GDP.
Russia now has reserves of $454 billion to cushion against oil-price fluctuations. More important, the rouble has fallen. Next year's budget assumes a dollar is worth 37 roubles, so it balances with oil at 3,700 roubles. A barrel currently costs 3,600 roubles (a much smaller fall than the dollar price), because the currency has plunged 20% this year. With oil at $80-85 a barrel Russia would probably run a budget deficit of only about 1% of GDP next year.
This is not a conspiracy really, it's a political agenda that's well known. Our execs that came down a few weeks ago mentioned this. Though maybe it is a conspiracy and our execs are just using it for leverage control over their employees. But they were not trying to pull anything over us or downgrade anything, so it didn't come off as such.Russia has oil budgeted for $100 which means it can cover its budget for about 4 years. Saudi Arabia can cover for about 8 years. A country like Nigeria for example, not so lucky. Can only sustain for a few months at these prices. The falling prices are hurting Russia a lot more than the sanctions imposed on them ever did. Oil Conspiracy?
By the way, I see Raymond James upgraded OXY stock today.This is not a conspiracy really, it's a political agenda that's well known. Our execs that came down a few weeks ago mentioned this. Though maybe it is a conspiracy and our execs are just using it for leverage control over their employees. But they were not trying to pull anything over us or downgrade anything, so it didn't come off as such.
Interesting take on it that's for sure. Maybe the U.S. put pressure on them to hurt Russia?Russia has oil budgeted for $100 which means it can cover its budget for about 4 years. Saudi Arabia can cover for about 8 years. A country like Nigeria for example, not so lucky. Can only sustain for a few months at these prices. The falling prices are hurting Russia a lot more than the sanctions imposed on them ever did. Oil Conspiracy?