One thing that I really haven't heard anyone talk about concerning this precipitous drop in the price of oil is how OPEC hasn't cut their production. In years past when the price of oil threatened to drop liek this, OPEC would only need to threaten to cut production to keep prices stable. Now, even in the face of plummeting prices, OPEC has said they will not cut production. (http://www.bloomberg.com/news/2014-12-14/u-a-e-says-opec-won-t-change-output-even-if-price-drops-to-40.html)
The result of this is that Russia's economy, so dependent on oil, is going right down the crapper. (http://www.bloomberg.com/quote/RUBUSD:CUR) I don't think this is any accident. Of course, one can only speculate the conversations that go on behind closed doors between U.S. politicians and Arabian sheikhs, but certainly no one is in any hurry to throw Vladimir Putin a life ring. For as much as Putin kicked around Obama this summer, maybe Obama deserves some consideration for throwing a haymaker of his own.
The result of this is that Russia's economy, so dependent on oil, is going right down the crapper. (http://www.bloomberg.com/quote/RUBUSD:CUR) I don't think this is any accident. Of course, one can only speculate the conversations that go on behind closed doors between U.S. politicians and Arabian sheikhs, but certainly no one is in any hurry to throw Vladimir Putin a life ring. For as much as Putin kicked around Obama this summer, maybe Obama deserves some consideration for throwing a haymaker of his own.
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