Friday, October 17, 2008

Russia and the $70 Barrel of Oil

A few months ago I heard a rather foreboding prediction that if the price of oil were to drop below US$70 per barrel for too long then Russia would engage in some sort of military action in order to cause uncertainty and drive the price up. The theory behind this being that oil was their major export and source of revenue.

So periodically I check in on what oil is selling for.

Who knows if this theory is true or false. Assuming it is true, one could argue that the Russians will deliberately not do anything until after the U.S. Election on November 4th, so as to not give John McCain any extra advantage of getting elected president.

Strange times we live in.

1 comment:

hms victory said...

Errr...you might have been in the US at the time so I don't blame you if you missed any coverage of world news and events but Russia has de facto bought Iceland for $4 billion 4 euros.

Oh, and Russia has also de facto pulled GERMANY out of NATO as far as anti-Russian political and military matters are concerned, so don't expect Georgia or Ukraine to be NATO members anytime soon...

Yeah, I think Russia HAS done something...and oil was around $70/barrel this time last year anyway...