The good, bad, and ugly about oil prices and the Russian "dollar."

We all love “cheap oil,”  but there is a political value to its price,  that is not all that good.  The Saudi’s have decided to rid the world of fracking, here in America,  and, cheap Russian oil,  as it lowers prices to below $60 a barrel ($56 per barrel this morning).  Fracking,  to be worthwhile,  must compete against $80 per barrel oil (and higher).  And Russia’s only economic hope for national fiscal stability is found in its oil exports.  Yesterday,  we found that the Saudi strategy is working.  Russia’s Central Bank, has announced a rise in primary interest rates from 10% to 17% with a view of stopping the fall of the Russian ruble in the face of a stronger dollar. 

 

This price war will hurt the weaker, poorer nations (called “Emerging” nations).  Whether there is harm or not,  you can see,  from the following headlines,  that the effects of this reality is world wide.  About 35% of all growth on The Street, has been influenced by oil investments.  There is talk that the per-barrel price, in our country,  can fall into the $40 range.  No one is talking much about what this might do to our economy,  but, for the time-being,  we all have money to spend, because of the falling prices  . . . . . . . . .   and they will be lower,  for several years into the future.  

 

Oil Prices News

·                                 Emerging Currencies Slump as Ruble Tumbles; Stocks Drop on Oil

Published 3 minutes ago

·                                 German Bond Gains Send Yields to Records as Oil Drop Intensifies

Published 11 minutes ago

·                                 U.K. Stocks Are Little Changed After Falling to 17-Month Low

Published 6 minutes ago

·                                 Norway’s Krone Slides to Parity With Krona as Oil Prices Plunge

Published 29 minutes ago

·                                 U.S. Stock Futures Plunge as Oil Turmoil Wipes Out Earlier Gains

Published 21 minutes ago

·                                 East Europe Currencies Drop With Ruble After Russia Raises Rates

Published 38 minutes ago

·                                 Ukraine’s Yatsenyuk Says Russia Is Paying for Aggression

Published 46 minutes ago

·                                 Indian Stocks Tumble Most Since July as Oil Slumps With Rupee

Published 42 minutes ago

·                                 Stocks Drop With Ruble as Oil Extends Selloff; Gold Jumps

Published 51 minutes ago

·                                 Turkish Lira Weakens to Record on Russia Contagion Concern


Published 38 minutes ago
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3 comments:

  1. AnonymousDecember 16, 2014 at 5:38 PM

    Mitt Romney blamed Obama for high gas prices:
    Article:
    http://www.cbsnews.com/news/mitt-romney-obama-to-blame-for-high-gas-prices/

    ReplyDelete
    Replies
    1. John SmithsonDecember 16, 2014 at 8:53 PM

      Obama has stated that high gas prices work toward his goal to lessen the power fossil fuels hold in this country. If not for the Saudi's decision to burn Russia and drive back the threat of defracking, we would still be paying the Obama sanctioned higher oil prices.

      Delete
    2. John SmithsonDecember 16, 2014 at 9:06 PM

      It is funny to me that the Left loves Obama's utopian policies (rebellion before fundamental change, the abuse of the middle class with a few to causing violent rebellion, the creation and use of "crisis" in the expanse of a one world, take from the rich and give to those who don't work), but hate people who point to his complicity in all this. They love the fact that he wants the death of fossil fuels NOW, but, in some sort of mental-disorder display, equally hate those who admit to this fact. High fuel prices are part of his agenda. So, why argue the fact when it is obvious?

      Delete

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