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|The war of Petroleum and Russia
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|Author:||wiz [ 15 Oct 2014 18:26 ]|
|Post subject:||The war of Petroleum and Russia|
The war of Petroleum and Russia
The USA and its administration, EU allies together with their OPEC friends are trying the same old trick, as they did in the past when tried to dissolve the Soviet Union, by dropping the oil prices and finally succeeded.
Last August, on a Greek Blogg, I posted an article entitled "A Euro-jerk", that I had written, regarding the person who instigated the above action against Russia.
I said then: "He was born in England but has a classic name of the Jews of Germany. His name is Richard Henry Czarnecki, an EU Polish MP that was elected under the banner of the Polish party "Law and Order" of Yaroslav Kaczynski, and is a member of the Committee on Foreign Affairs of the EU Parliament. He proposed what should be done, by "the west", in response to Putin actions.
"The Western world must respond with an open attack against the Russian Federation in order to reduce energy costs and eliminate the Russian rubble from the international financial transactions.
We need sanctions in the form of non-convertibility of the rubble and actions to lower the price of oil and gas, "he said."
And that is what the "above" did, who believe the same as the cripple John McCain, who said that Russia is nothing more than "a gas station disguised as a country".
Applying this scenario the USA increased their oil production, almost eliminating imports and converted USA into an oil exporter country. According to data from IEA (International Energy Agency), American exports of oil have been found in the highest levels from the past 57 years.
Saudi Arabia increased its production, reduced the prices of its own oil and the "rebels" in Libya and IKIL selling contraband. The daily output of OPEC exceeds demand. The international price of Brent crude oil has fallen below $ 90 a barrel for the first time since December of 2010.
Some believe it could fall as low as $ 60, although most expect that by the end of this year oil prices will stabilize around $ 100 per barrel. On the 27 November it will take place in Vienna an OPEC meeting to discuss possible cuts in oil production in order to return the oil prices to $ 100 per barrel, but the obstacle is Saudi Arabia, which will reduce the price of even one U.S. dollar more.
The average oil prices currently range at $ 87 per barrel, while the budget of Russia is based on the forecast average international price of $ 104 per barrel for 2014 and $ 100 a barrel for 2015 to 2017. At the same time the Russian budget is based on the assumption that the average exchange rate to the dollar in 2014, will be 37.7 rubbles per dollar, and is already at 43.
Russian President Vladimir Putin warned today that the Russian government can make budget cuts, if oil prices continue to fall. He also underlined, except for the fall of energy prices, the prices of some other traditional export products of Russia have fallen too. Oil - along with the natural gas exports, contribute more than half of the annual income for Russia; and have fallen by about 24% from its high level, in June.
The Deputy Finance Minister Tatyana Nesterenko said on Monday that the Russian government may spend up to $ 37 billion from the National Reserve Fund over the next three years if world oil prices continue to fall. The National Reserve Fund of Russia was established to accumulate surplus revenues from oil exports to support the federal budget at times when there is a decrease of revenue from oil and gas.
(The lesson from USSR whose production of 12 million barrels per day in 1988 fell to six on Gorbachev and the price was around $ 20, while in 1980 was over $ 80).
The Central Bank of Russia has spent $ 6 billions, in the last 10 days, to support the rubble and the Finance Minister, Anton Silouanov said that the Russian government will spend 500 billion rubbles from the reserve fund of the country in 2015, if international oil prices drop further and continue the rubble devaluation.
Yesterday Russia cancelled a Bond auction since the dip in oil prices and the sanctions increased borrowing costs 9.94%, the highest level in the last five years. The first auction of Russian bonds after the 16 July was (for political reasons) on the 24 September, with a yield of 9.37%.
Putin's answer is the trade between Russia and China, which despite the global economic downturn will reach $ 100 billion in 2015 and at the same time, China will increase its investments in the Russian economy.
At the same time Russia is buying gold stock, and at the end of August 2014, had a total volume of 1112.5 tonnes in gold reserves. So Russia surpassed China (1054 tonnes) and Switzerland (1040 tonnes). Today, Russia ranks fifth, after the United States (8100 tonnes), Germany (3300 tons) Italy (2450 tonnes) and France (2435 tonnes).
It appears that Vladimir Putin and his advisers, took notice, of certain comments made in 2006 in an international meeting in St Petersburg, and today are ready to defend the economic onslaught of the American administration and their partners of the New World Order.
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