Western/ Saudi (OPEC) Conspiracy To Damage Russian Economy?

I was just reading on the BBC website that the Russian Rouble experienced its biggest one day fall since 1998:

Rouble suffers biggest one-day fall since 1998 as oil slides

Russia is heavily dependent on revenues from oil exports, making its currency vulnerable to falling prices.

Russia is the world's second-largest oil exporter, with oil and gas accounting for 70% of its exports and half of government revenues.

Oil prices have fallen by more than a third since the summer, while the rouble is down nearly 40% against the dollar since January.

Is it possible that alongside sanctions the West is using the price of oil as an extra, very dangerously hard hitting economic weapon against Russia to peruade Mr Putin into their way of thinking?

We know of the recent OPEC meeting. Are the oil prices being slashed deliberately for the purpose of damaging the Russian economy still further?

One thing I know is that this is VERY serious stuff. The Russian economy is being stung big time by the sanctions and this latest development is going to have a huge effect.

It seems a little suspicious to say the least. It seems to me that the West is playing as dangerous a political game as they did with Adolf Hitler all those years ago. How is this going to play out? Will Mr Putin cave in and join the club proper (he will doubtless lose his stronghold on power in Russia if he takes that course) or will he react and "fight" Russia out of this Western pressure to bend to their will?

I'll believe this, because it makes sense. The Saudis are heavy into speculation so they can make up some of the money they lose this way. They just don't make their money selling it. Many oil companies execs invest in speculation, it makes their companies bottom line look less profitable and they pay less tax on the investment end than on the income taxed paid on a higher salary.

These are normal loopholes for the rich.

This will not hurt Russia as much as the US thinks. They can crumble our economy by selling diamonds cheaply. Their overhead is not as high as the US corporations have either, the US companies will fail first. This makes the top one percent more powerful though in the US. This is highly planned, they want to bankrupt all the small companies in the US on top of crippling Russia's economy.

But we will get reasonable gas and oil for a little while. This will not effect natural gas prices though. They will make sure that Natural gas prices stay up there.

a reply to: rickymouse

Hi Rickymouse.

Yes, I know how the Saudis do things. You are right. Somehow the West is in a position to use the oil tactic.

It is interesting that you say Russia have their own weapon against the U.S, your "diamonds" example. I am not familiar with this U.S area of economic influence.

You say about the natural gas not being "sacrificed" (hah). It seems that this is not being tampered with as it stands.

It is going to be an interesting next few years I know that for sure. I hope it doesn't hit us like a big bad steam train the way WW2 did.

In the end you know it is all about power. Those, whoever they are, that are the true powers in the West have got their eyes on Russia. They have now got their teeth into Russia. I do not even know why anymore we are continuing sanctions against them? Is it really because of Ukraine or is that the great excuse?

One thing I know for sure is that Russia is in for a hard time and this will have consequences of hardships for the masses.

Who knows may be there is an agenda of creating enough hardship in Russia for a political change?

originally posted by: lonesomerimbaud
How is this going to play out?

PERSONAL-OPINION: Backfire ... ( i.e. having 2nd-thoughts )

Crude-Oil is currently making a modest rebound (68-69): Live Oil Chart.

I suspect that oil will soon rebound back to 75ish (traditional-pump profitable) followed by 85ish (frack-well costs) however offshore production will be effected as long as the price remains below 95ish (offshore costs).

-
Prior-Opinions-n-Observations:

The U.S. Federal Govermnemt (thru its "Offshore-Leasing") rakes in approx. 30%-Royalty-Fees from "U.S. Offshore Production".

I have the "OPINION" that Offshore-Producers need $95-ish-per-Barrel to Break-Even ... ( i.e. Cost-of-Production ).

My "OBSERVATION" (If my "OPINION is correct) is that U.S. "Offshore-Production" will also be affected ...

AND

U.S. Federal-Revenue will also ... DROP!

(in case anyone's interested, I also believe the Onshore-(non-shale)-Cost-of-Production is 60+ish and the U.S. Federal Royalty-Tax on this Production is 15%)

PLUS

The Saudis will be the BIG-WINNERS in this scenario where the U.S. will have to import/buy Saudi-Oil to make up for any shortage of U.S. total oil production.

OPEC Policy Ensures U.S. Shale Crash
.

a reply to: FarleyWayne

Thanks for that info.

May be so. I will be monitoring this to see how it all transpires.

It is mighty bad news for Russia, this and the sanctions. A 40% drop in the rouble against the dollar in such a short space of time, that has got to hurt.

But it will probably strengthen the Russian people behind Putin even more if there are economic problems because of this. Right now the view from RT is that the Western banking Cabal and it's allies is insane and will not allow equality and do not want real money backed by gold.

The more the western side try to hurt Russia the more the Russians move away from being dependent at all from the western block and push towards a non western alliance thru BRICS, and the Russian government can use the western cabal as an excuse for any bad management and equality in the Russian system, even if the western cabal is not the reason for everything wrong in Russia.

a reply to: rickymouse

Maybe I don't really understand, but how would selling diamonds more cheaply cause the US economy to crumble?

According to Wikipedia, diamond mining is only a $9 Billion per year business.

Wikipedia

a reply to: lonesomerimbaud

Interesting perspective, I wouldn't be surprised if the U.S. and Saudis are behind this.

a reply to: LittleByLittle

We will have to see how Russia deal with all this.

Perhaps they have enough economic ties to not have to rely on the West and can function in the way you suggest.

It's certainly game on.

a reply to: WeRpeons

There could be some truth that it is all being manipulated as an extra, unspoken sanction that it is out in the world of reality actually taking place. Cause and effect. I don't believe these markets like oil are freewheeling entities. There are men controlling and manipulating prices for reasons that are in their interest. It would not be surprising to my cynical nature were it so.

US is trying to kill 2 birds with one stone i think, its also to hurt ISIS so that they cant sell the oil from iraq and syria