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Seeking the winds that help to sail on Shakespeare's tide.

Thursday, March 17, 2005

Turn about and Russian oil production

There is a body of opinion that suggests that one of the main causes for the collapse of the Soviet Union was that the Saudi Arabian monarchy dropped the price of oil, thereby co-incidentally doing fatal harm to the Soviet economy, which was relying on the price it got for their oil exports to provide an underpinning to the economy.

Given that the world is now moving rapidly into the period where supply does not meet demand and where production is, in fact, peaking, one wonders if the current machinations over in Russia - where oil companies are being taken over and production is currently declining, might not be a little bit of Putin having learned his lesson and now taking his turn at tweaking us in a reversal of roles. After all he has little to lose, and a larger income to gain, and as for Western economic stability . . . ..


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