MCViewPoint

Opinion from a Libertarian ViewPoint

The Coincidence Of Russia’s Rise And Oil’s Fall

Posted by Martin C. Fox on December 16, 2014

The price of oil has been dropping for quite a while. Why no clamor from OPEC to reduce production? Because the US told them to keep quiet. It likely did not take much coaxing.

Saudi Arabia has two problems. US energy independence and Russian oil and gas production. Three problems if you count the cost of training and equipping Sunni terrorists. Training terrorists, even slobbering zealots, isn’t cheap these days.

Dropping oil prices kills two birds. Russia’s break even price point is $70 per barrel if the media is to be believed. Small US shale oil producers have varying break even points equal to that or somewhat lower. SA would gladly take a short-term hit to kill off the competition.

The neocons want world oil prices to drop to cripple Russia’s economy. It will put Russia in a bad way when the war the neocons are gunning for gets rolling.

Oil price manipulation looks easy. It will be just as easy to get the prices back up when the powers that be deem it acceptable. They will go up. Jeb Bush and Dick Cheney will see to that.

We don’t have the best crony-capitalist system money can buy for nothing.

Enjoy the low gas prices while you can. When war starts the bicycle paths will be crowded.

Be seeing you

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