What causes the extreme drop in oil and gas prices? And who wants to crush russias only income?

[UKBengali]

Not quite. Russia's reserves stand at about $409 billion, according to their own central bank. Monthly values | Databases | Bank of Russia

This down about $79 billion from the same time last year. The last reported numbers are end of Sept, and they have thrown perhaps another 5-10 billion at protecting the ruble in October. They have a leak. At 10 billion a month, they would be good for more like 3.5 years. That assumes that the lower price of oil somehow does not continue to hurt them even worse, which it definitely will.

What they need is a rebound in the price of oil. Short of that, they are in serious trouble.

And you assume that Russia will sit there and take no necessary actions.

4/5 years is plenty of time for Russia to cut public spending to take into account lower oil price and also take necessary measures to stimulate the non oil/gas sectors of their economy. Oil prices are only down 20% not completely collapsed.

 

[C130]

And you assume that Russia will sit there and take no necessary actions.

4/5 years is plenty of time for Russia to cut public spending to take into account lower oil price and also take necessary measures to stimulate the non oil/gas sectors of their economy. Oil prices are only down 20% not completely collapsed.

cut public spending. well that'll be political suicide for Putin and his successor.

 

[zzzz]

ummmmmm, sorta. they can manage. it's countries like Russia,Iran,Nigeria, and Venezuela who are the ones in real trouble

No its USA who is in trouble. Because with the prices below $80 your shale oil industry will collapse.

 

[C130]

No its USA who is in trouble. Because with the prices below $80 your shale oil industry will collapse.

not necessarily. some of the bigger shale plays can still be profitable if oil is $60 a barrel, but if prices stay low for a long period of time and below >$60 then we won't see expansion of new shale production, or they'll shut down production til prices raise again

we'll just see how low prices drop, and for how long, and how it effects shale/tight oil.

 

[atatwolf]

Well, last time the west artificially decreased the energy prices during the cold war, the Ruskies disintegrated into tens of pieces. I'm afraid the same will happen again sooner or later.

Everything east to the Volga river will get independence and probably also Caucasus and Tataristan.

 

[Hamartia Antidote]

View attachment 139778

amazing how Russia and Venezuela are crying over oil being under $100 when just 10 years ago it was just $40
hell raise them prices so we can develop shale and tar sands, and make us move towards electric cars.

best move the cartel can do is strike balance in pricing and balance would be $70 to $80 dollars.
Russia and Venezuela are just going to have cut back on the welfare programs or produce more oil, not so easy for the latter though.

 

[C130]

View attachment 141219

Bloomberg Gas Price Ranking

$2.75 seems like the sweet spot to pay for a gallon of gas.
even if we had to pay $5 it's still cheaper than what most of Europe has to pay.

 

[rubyjackass]

ohhh still not bad sir

Sir jee, the prices look better for some time to come. Under $90 for the next two years. Unless some $hit storm like ISIS taking over Saudia happens.

 

[rubyjackass]

Bloomberg Gas Price Ranking

$2.75 seems like the sweet spot to pay for a gallon of gas.
even if we had to pay $5 it's still cheaper than what most of Europe has to pay.

Even if you pay $4 for a gallon, which is the highest ever in US, you would be paying less than what India pays today. You guys are in a position controlling the price of oil the most but pays the least for its use.

 

[C130]

Even if you pay $4 for a gallon, which is the highest ever in US, you would be paying less than what India pays today. You guys are in a position controlling the price of oil the most but pays the least for its use.

controlling the price of oil?
pay the least for it's use, compared to who?
Venezuela,Saudi Arabia,UAE, pay way way lower than we do.

 

[rubyjackass]

controlling the price of oil?
pay the least for it's use, compared to who?
Venezuela,Saudi Arabia,UAE, pay way way lower than we do.

Obviously I was not talking about the oil exporting countries, duh!! US imports 40+% of its oil and yet pays lower than many third world countries for gas.
US does influence(my bad I used the word control) the price of oil in many powerful ways politically(wage a war or defeat someone like ISIS), technologically(open the shale oil jar or stop funding climate studies) and economically($ is yours. The exchange itself adds 1-2% of price for other oil consumers).

 

[senheiser]

I´m fine with that. Russia is the Enemy of europe and not saudi arabia

cool story bro funny how europe is overrun by russians

 

[senheiser]

not necessarily. some of the bigger shale plays can still be profitable if oil is $60 a barrel, but if prices stay low for a long period of time and below >$60 then we won't see expansion of new shale production, or they'll shut down production til prices raise again

we'll just see how low prices drop, and for how long, and how it effects shale/tight oil.

blabla russian is always cheaper to produce than america. You need 90$ a barrel according to your own propaganda media

 

[senheiser]

Well, last time the west artificially decreased the energy prices during the cold war, the Ruskies disintegrated into tens of pieces. I'm afraid the same will happen again sooner or later.

Everything east to the Volga river will get independence and probably also Caucasus and Tataristan.

vs

 

[senheiser]

Bloomberg Gas Price Ranking

$2.75 seems like the sweet spot to pay for a gallon of gas.
even if we had to pay $5 it's still cheaper than what most of Europe has to pay.

russia is cheaper