Pipedream24 said:
No. It has nothing to do Russia...It's just side effect that the Russian economy is imploding since they along with Venezuela are broke and depend on their oil exports to stay afloat. The cheap gas is being caused by OPEC. With the U.S. and Canada producing large amounts of shale oil, there has been an increase in the global oil supply that has been exaggerated by a decrease in demand. The shale companies need oil to stay above $65 a barrel in order to make a respectable return on investment. OPEC knows this and has refused to reduce their output in order to drive the price down and slow down the shale oil companies. There plan has already began to work. Oil is currently in the area of $58 barrel and investment in new shale oil production has slowed. It will take at least 6 months before the market will reflect this but oil prices will begin to rise in late 2015/early 2016. |
^this, Russia is just an unfortunate victim in OPEC's oil war. Anyone that thinks this war is good is a fool as in the long term it will lead to higher prices as competitors go bust. The same idiotic situation is happening with mining at the moment, especially iron ore where there is a massive over production as they all try to steal market share and drive the small players out of the market.
