Why the price of oil is high
OPEC and the Big Oil are the reasons that oil prices are high, right? Russia has a vested interest in the stability of the Middle East, right? Putin is a man that Bush can trust, right?
Well, the thing things to remember is that oil produced in Russia are of a lower grade and more expensive to produce in Russia. Oil prices below $60/barrel keep Russian oil from being profitable. Oil revenues are the main source of money into the government. And Putin wants to rebuild the military, which also makes the surrounding countries nervous..... Sooooo...here's Garry Kasparov explaining why we need a new government in Russia via Transatlanic Politics:
Gary Kasparov, the man who was a world chess champion for 15 years in a row is trying now to checkmate Vladimir Putin in politics. Wishful thinking? A mirage of the West projected onto Russia? Maybe. Leader of the opposition movement "The Other Russia", Mr. Kasparov admits quite sincerely: "We are not trying to win the elections, we are trying to have elections!" In Kasparov's view, the main goal of Russian foreign policy is to raise the oil price, no matter what - that's why the tensions in the Middle East are so important to Putin:
"Putin doesn't run a country, he runs a corporation. He is the ugliest mixture of Karl Marx and Adam Smith. He is not interested in restoring the Russian influence, he's just interested in Gazprom's and Rosneft's influence. Actually, Putin is destroying the Russian state. "
"Selling nuclear technology to Iran is good - you get money and create tensions - selling missiles to Hezbollah through Syria serves the same purpose. "
"Everything that will raise the oil price is good, in Putin's view."
"If the price of oil falls under 50 dollars a barrel, you don't have to be a rocket scientist to predict that the regime will fall. But even if the price of oil stays high, the regime will collapse. The problem with this regime is that the oil money disappears, you can't find it in Russian banks or investments. You can find it anywhere from Riga til London, but not in Russia."
Well, the thing things to remember is that oil produced in Russia are of a lower grade and more expensive to produce in Russia. Oil prices below $60/barrel keep Russian oil from being profitable. Oil revenues are the main source of money into the government. And Putin wants to rebuild the military, which also makes the surrounding countries nervous..... Sooooo...here's Garry Kasparov explaining why we need a new government in Russia via Transatlanic Politics:
Gary Kasparov, the man who was a world chess champion for 15 years in a row is trying now to checkmate Vladimir Putin in politics. Wishful thinking? A mirage of the West projected onto Russia? Maybe. Leader of the opposition movement "The Other Russia", Mr. Kasparov admits quite sincerely: "We are not trying to win the elections, we are trying to have elections!" In Kasparov's view, the main goal of Russian foreign policy is to raise the oil price, no matter what - that's why the tensions in the Middle East are so important to Putin:
"Putin doesn't run a country, he runs a corporation. He is the ugliest mixture of Karl Marx and Adam Smith. He is not interested in restoring the Russian influence, he's just interested in Gazprom's and Rosneft's influence. Actually, Putin is destroying the Russian state. "
"Selling nuclear technology to Iran is good - you get money and create tensions - selling missiles to Hezbollah through Syria serves the same purpose. "
"Everything that will raise the oil price is good, in Putin's view."
"If the price of oil falls under 50 dollars a barrel, you don't have to be a rocket scientist to predict that the regime will fall. But even if the price of oil stays high, the regime will collapse. The problem with this regime is that the oil money disappears, you can't find it in Russian banks or investments. You can find it anywhere from Riga til London, but not in Russia."
Labels: mideast politics, oil prices, russia
posted by Cargosquid at 9:08 AM
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