Saudi Arabia is killing the Russian economy in its fight to control oil prices

[T-Rex]

You must be living in some parallel world !

Doesn't Russia get a major portion of its revenue from arms sale abroad or is it just a fairy tale?

 

[Providence]

Doesn't Russia get a major portion of its revenue from arms sale abroad or is it just a fairy tale?

No.

 

[oprih]

Seriously? More like saudi is killing it's own economy thanks to their amateurish policies.

 

[mike2000 is back]

You must be living in some parallel world !

What do you expect of Superboy?? Living in a dream/parallel world is his hobby.

Doesn't Russia get a major portion of its revenue from arms sale abroad or is it just a fairy tale?

LOL Do youeven know anything about Russia? lol So you think arms sales alone can keep a country afloat??

 

[ultron]

Russia is a super power. Saudi Arabia is not. Russians are Vikings.

 

[Baybars Han]

The text of the article are scarier than its charts. Unemployment went from 5.1% to 5.5%? Industrial production is down by 3%?

That's it?

As well as the economy contracting 4% in the last quarter.

 

[damm1t]

Russia is a super power. Saudi Arabia is not. Russians are Vikings.

yea..

 

[mike2000 is back]

The text of the article are scarier than its charts. Unemployment went from 5.1% to 5.5%? Industrial production is down by 3%?

That's it?

Not just that. Their economy is not only contracting but it will barely grow these coming years.

Medvedev urges Russia to address dependence on world oil prices | Russia Beyond the Headlines
Russian prime minister warns of 'deep recession' in 2015
Russia’s GDP Estimated To Contract By 5.5% In 2015, Impacting Armenia's Economy: Moody’s
IMF Slashes Russia's 2015 Growth Forecast - WSJ

I'm sure Russia's leaders themselves know their country better than you and me.
In short, Russia is in for a tough ride these coming years with oil prices at record low(and showing now signs of increasing), a war in Syria, Ukraine and absolving Crimea,productivity/industrial production declining etc.
The hell even super advanced/developed/matured countries/powers like U.S(4% GDP growth last year and about 3.2% expected this year) , U.K(3.2% last year and 2.6% expected this year) and Germany(1.6% this year from 1.7% last year) etc ARE ALL growing VERY FAST compared to less developed Russia. This shouldn't be the case judging by the fact that ultra developed western countries should have less room/space for growth giving their high level of development/living standards.


UK's economic growth for 2014 revised up - BBC News
Bundesbank sees 'strong' German growth in 2015 - RTÉ News
German growth seen strong in second half, China a worry - Bundesbank - Yahoo Finance
US GDP grows at strong 4 percent rate | TheHill


Russia has to diversify away from its dependence on natural resources, if not things will get worse for her in the future. Since countries like Germany have a service sector that contributes around 70% of the total GDP, industry 29.1%, and agriculture 0.9%, it's a similar case for U.K,France, U.S etc. Russia has to follow suite or..............

 

[Serpentine]

Announced today:

Saudi economy in turmoil as country posts $98bn deficit | Middle East Eye

Saudi to boost petrol prices by more than 50% - Yahoo News

 

[BLACKEAGLE]

Announced today:

Saudi economy in turmoil as country posts $98bn deficit | Middle East Eye

Saudi to boost petrol prices by more than 50% - Yahoo News

I don't know whom you're laughing at, maybe at yourselves.

Moving Saudi Arabia’s economy beyond oil | McKinsey & Company

Saudi Arabia Unveils Broad Economic Reforms to Attack Record Deficit - NBC News

Saudi to diversify economy away from oil: King Salman - Yahoo News

Diversifying the Saudi economy to secure future growth | Consultancy.uk

Announced today:

Saudi economy in turmoil as country posts $98bn deficit | Middle East Eye

Saudi to boost petrol prices by more than 50% - Yahoo News

6- Saudi Arabia $671 bn
Fund Rankings | Sovereign Wealth Fund Institute

Saudi Arabia 1.570 (lowest)
List of countries by future gross government debt - Wikipedia, the free encyclopedia

 

[marbella]

good. let em fight. lets enjoy cheap oil!!

 

[T-Rex]

No.

So, it's not a fairy tale.

 

[Providence]

So, it's not a fairy tale.

It's not that hard to comprehend. I have stated clearly, Russia depends HEAVILY on oil exports !

 

[nvKyleBrown]

I really don't get the "put the shale oil producers out of business" argument. The shale oil will still exist. As soon as the price goes up, the current crop (or a new crop, if those guys are out of money) steps up and turns the wells back on.

Shale oil changed the game. Done deal, it's not going away. The price of oil isn't going back up to $100/barrel any time soon. The tech continues to get better. The human race isn't going to forget how to extract shale oil. Ergo, shale oil will limit the price of oil for the foreseeable future.

 

[Providence]

I really don't get the "put the shale oil producers out of business" argument. The shale oil will still exist. As soon as the price goes up, the current crop (or a new crop, if those guys are out of money) steps up and turns the wells back on.

Shale oil changed the game. Done deal, it's not going away. The price of oil isn't going back up to $100/barrel any time soon. The tech continues to get better. The human race isn't going to forget how to extract shale oil. Ergo, shale oil will limit the price of oil for the foreseeable future.

No. The argument does have weight. That's because shale oil wells have to be pumped out fully within 1-2 years of digging. So, if investors invest in shale oil with project break-even cost of $80 and oil remains at $60 for not 2-3 years, there's no way they can turn profit.

If a sizeble chunk of them lose money, the sector would attract lesser investment and hence the assertion !