The world should be mailing thank-you letters to Moscow right about now.
$30 dollar oil will be great for the global economy (and in turn, a good global economy is good for oil).
Sure there will be losers, chief among them US shale and the Saudis who need far higher prices to make their budgets work.
But then and the health of its economy right there.
To say nothing of the effect of cheap energy itself. Personally I don’t think even $30 oil will be enough to avert a crash but if anything could, it would be that.
Similar story with the Saudis,
Some of Russia’s friends like Venezuela and Iran will be hurt as well, but ironically the fact the US has already cut down their imports to a fraction of their capacity means they have a lot less left to lose.
And unlike a low-interest rate stimulus, it doesn’t throw economic calculation off balance by falsifying the price of credit and conjuring up a false abundance of real-world capital.
In the meantime, Russia developed a number of new oil fields but couldn’t move on with exploiting them which made its effort rather pointless.
This is a classical win-win. Rather than looking to squeeze every last dime from the consumers in the short term, the oil producers will be helping them to thrive which in turn will make sure the demand keeps growing.
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