The Political Ramifications of Oil Price Drop

[g5000]

One of the economic and political consequences of the coronavirus is that Russia and Saudi Arabia are engaged in an oil war. This has resulted in the price of oil plummeting to $33.

In 2014, the price of oil plummeted to $36 a barrel.

Being a net exporter, and with oil representing more than 30 percent of their economy, Russia suffered almost immediate consequences. In the last six months of 2014, the Russian ruble declined almost 60 percent against the US dollar.

This caused the relative prices of imports into Russia to skyrocket, and Russia suffered significant inflation.

This, in turn, caused Russia to enter into a deep recession.

Finally, this put a crimp in Putin's imperialist desires to reconstitute the Soviet Union's empire.

Today, Putin is trying to bluff Saudi Arabia, claiming his country can withstand $20 oil for two to three years. He's full of shit.

Saudi Arabia is calling his bluff.

The long term goal, from Russia's standpoint, is to destroy the US shale oil industry. Putin is willing to take a great deal of pain, at the Russian people's expense, in order to put an end to the long term pain he has been feeling from our shale oil industry.

If you don't think this oil war is going to cause a lot of political pressure on Trump and other world leaders, stand by...

Putin just sparked an oil price war with Saudi Arabia — and US energy companies may be the victims

 

[BluesLegend]

This will make it difficult for left wing climate alarmists to bash oil in favor of much higher cost renewable energy sources. Low gas prices are a big win for the poor and middle class.

 

[g5000]

Russia says it can deal with pain of a Saudi oil price war

Russia’s finance ministry said on Monday that it would draw from its $150bn national wealth fund in order to boost budgetary spending, while oil prices remained at between $25 and $30 a barrel. It said it could maintain that level of budgetary support and cover the lost revenue for the next six to 10 years.

Putin, in the immortal words of Joe Biden, is full of shit.

 

[CrusaderFrank]

I thought Trump worked for Putin?

 

[g5000]

Russia's debt-to-GDP ratio is 18 percent.

Contrast with US debt-to-GDP at 105 percent.

 

[BlindBoo]

This will make it difficult for left wing climate alarmists to bash oil in favor of much higher cost renewable energy sources. Low gas prices are a big win for the poor and middle class.

It will also make it difficult for the Oil Patch in the USA.

 

[BS Filter]

If gasoline is $2 a gallon on election day, the Democrats are gonna get creamed.

 

[bendog]

I thought Trump worked for Putin?

Trump's casinos work for the Oligarchs who own them.

US oil shale producers cannot withstand any price war. That is old news.
U.S. Oil Shale Debt Bubble Poised for Explosion

 

[BlindBoo]

If gasoline is $2 a gallon on election day, the Democrats are gonna get creamed.

It's already below 2 bucks here.

 

[bendog]

This will make it difficult for left wing climate alarmists to bash oil in favor of much higher cost renewable energy sources. Low gas prices are a big win for the poor and middle class.

It will also make it difficult for the Oil Patch in the USA.

somewhere around 5% of US employment with over two million in "unconventional" extraction as of 2012

How many jobs has the oil and natural gas industry created?

 

[White 6]

I thought Trump worked for Putin?

He probably does. What does this change on personal debt owed to his benefactors?

 

[BluesLegend]

If gasoline is $2 a gallon on election day, the Democrats are gonna get creamed.

Dems will raise the gas tax to steal the windfall from the poor and middle class.

 

[BS Filter]

If gasoline is $2 a gallon on election day, the Democrats are gonna get creamed.

Dems will raise the gas tax to steal the windfall from the poor and middle class.

I hope they try.

 

[BluesLegend]

If gasoline is $2 a gallon on election day, the Democrats are gonna get creamed.

Dems will raise the gas tax to steal the windfall from the poor and middle class.

I hope they try.

That's what they did in Dem states, they stole the Trump tax cut. Its a common tactic Dems use, the price drops and the wormy bastards bump up the tax while nobody is paying attention.

 

[BS Filter]

If gasoline is $2 a gallon on election day, the Democrats are gonna get creamed.

Dems will raise the gas tax to steal the windfall from the poor and middle class.

I hope they try.

That's what they did in Dem states, they stole the Trump tax cut. Its a common tactic Dems use, the price drops and the wormy bastards bump up the tax while nobody is paying attention.

They keep trying here in Washington, but people are awake.

 

[initforme]

Are we supposed to show an ounce of concern for big oil?

 

[JustAGuy1]

One of the economic and political consequences of the coronavirus is that Russia and Saudi Arabia are engaged in an oil war. This has resulted in the price of oil plummeting to $33.

In 2014, the price of oil plummeted to $36 a barrel.

Being a net exporter, and with oil representing more than 30 percent of their economy, Russia suffered almost immediate consequences. In the last six months of 2014, the Russian ruble declined almost 60 percent against the US dollar.

This caused the relative prices of imports into Russia to skyrocket, and Russia suffered significant inflation.

This, in turn, caused Russia to enter into a deep recession.

Finally, this put a crimp in Putin's imperialist desires to reconstitute the Soviet Union's empire.

Today, Putin is trying to bluff Saudi Arabia, claiming his country can withstand $20 oil for two to three years. He's full of shit.

Saudi Arabia is calling his bluff.

The long term goal, from Russia's standpoint, is to destroy the US shale oil industry. Putin is willing to take a great deal of pain, at the Russian people's expense, in order to put an end to the long term pain he has been feeling from our shale oil industry.

If you don't think this oil war is going to cause a lot of political pressure on Trump and other world leaders, stand by...

Putin just sparked an oil price war with Saudi Arabia — and US energy companies may be the victims

At home it will crush the Shale industry.

 

[Fort Fun Indiana]

Low gas prices are a big win for the poor and middle class.

Oh really? Then, since I am sure you did extensive research, you can tell us what the average household saves I've 6 months, when has is $2/gallon as opposed to $2.80 per gallon.

And...go!