Wednesday, December 23, 2015

Russian Oil Grows

You gotta wonder...  are all these people pulling down millions as Wall Street analysts and traders actually idiots?  How could the not see this coming?
“I know of no one who had predicted that Russian production would rise in 2015, let alone to new record levels,” said Edward Morse, Citigroup’s global head of commodities research. 
Russia produces oil at under $4 a barrel.  It's selling near $40.  So what if it dropped from $90 or whatever.  They need money, oil production and refining produces jobs, and they have a lot of it.  USA is out of the oil business at $36 a barrel (now about $38), because it costs $36 to produce a barrel in USA.    When oil prices fall, we usually start wars to goose the price back up.
“I don’t know what the oil price would have to fall to for things to change dramatically,” Stavskiy said. “We’ve been through $9 a barrel and production continued, so if something like that happens, we know what to do.”
The USA sanctions on Russia for defending its country against USA-led NATO aggression is working out very well for Russia. If Russians have kept producing at $9 a barrel, why wouldn't they do it again? Doubling your money on each barrel extracted?  Heck yes!  If the Russians can play their hand like free-marketers, the former Soviet Union will look like 1950s USA prosperity.  Country'll grow.

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