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Russia/OPEC - 'We will live in a different reality'.

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posted on Dec, 11 2015 @ 12:31 PM
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The Global Media seems like it's going to explode at the moment, with constant in your face news about ISIS, ISIL, IS, Al Queda, The Taliban, Terrorism, Terrorists, Gun Violence etc, but we are not seeing what I feel is the underlying cause for World tensions right now....OIL/$$$



We will live in a different reality,' said a top Kremlin official. The message is aimed squarely at Saudi Arabia in a war for market share


I find it interesting that normally 'Telegraph News' from the UK prints complete garbage, then I spot this really interesting story about the price of Oil and the ongoing War of Price between Russia and Opec. I recently watched a great doco on Oils History and the way the West murdered, warred, bribed and blackmailed its way to trying to control the Oil from the Middle East and this story seems like the real deal as to what we are seeing playing out right now.




Maxim Oreshkin, the deputy finance minister, said the country is drawing up plans based on a price band fluctuating between $40 to $60 as far out as 2022, a scenario that would have devastating implications for Opec


OPEC and Russia have been playing 'Russian Roulette' (pardon the pun) with the Oil Price in order to bring the other down. It does seem like Russia are winning and OPEC know it. Watch this space as it has been shown already in History that the West will do anything to keep control and huge profit in regards to Oil.

The profits OPEC make are truly ridiculous. Even with things looking dire for them, they still make staggering profits that would make anyone sick -



Opec revenues will fall to $400bn (£263bn) this year if current prices persist, down from $1.2 trillion in 2012. This is a massive shift in global wealth


So things are not looking good. However things play out here, one side is not going to give up without a fight and that's worrying. Who will be the eventual loser? Maybe all of us.

Anyway, this article is worth a read for anyone who is following the current Russia, Syria, Iran, West, Saudi situation. I feel behind the curtain it's all about Oil/$$$. Have a read and feel free to comment.I've linked the docos too. It's a 3 part series and it's well worth a watch!

www.telegraph.co.uk...

Planet Oil - Episode 1
Planet Oil - Episode 2
Planet Oil - Episode 3




posted on Dec, 11 2015 @ 12:41 PM
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a reply to: grantbeed

I don't quite understand the economics of this though. Is Russia declaring that they have a ton of oil coming in and will be exporting it at lower prices to undercut OPEC and steal their customers?

Eye opening piece of information here.

I had absolutely NO idea that Russia was going (or even could go) head to head with OPEC like this.
edit on 11-12-2015 by FamCore because: (no reason given)



posted on Dec, 11 2015 @ 12:45 PM
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originally posted by: grantbeed

OPEC and Russia have been playing 'Russian Roulette' (pardon the pun) with the Oil Price in order to bring the other down. It does seem like Russia are winning and OPEC know it.



Russia is far from "winning" in that sense, and OPEC knows it. The Russian economy is already in bad shape as noted in your article

Whether Russia really can withstand the strain for years is an open question. The economy is in deep recession. Output has contracted by 4pc over the last year. Real incomes have fallen by 9pc. The latest gambit may in reality be a negotiating ploy.


Mr Oreshkin said oil prices of $40 would force the government to bleed its reserve fund by 1.5 trillion roubles next year, or 2pc of GDP.


*ADD*
The estimated income dropping 2/3 is also completely expected, seeing as oil is 1/3 the price it was in 2012.
edit on 11-12-2015 by Vector99 because: (no reason given)

edit on 11-12-2015 by Vector99 because: (no reason given)



posted on Dec, 11 2015 @ 12:54 PM
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a reply to: Vector99




Saudi Arabia is trapped by a fixed exchange peg, forcing it to bleed foreign reserves to cover a budget deficit running at 20pc of GDP.




Saudi Arabia may be in worse shape than Russia.



posted on Dec, 11 2015 @ 12:55 PM
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Most of the price of oil was caused by speculation. The oil companies sell the oil to the market where it is raised in price often three fold then sold back to the same companies refineries. The government must have done something about that finally, the price of oil is going down to where it should be. Most of the cost of a gallon of gas is from the extreme profits of investors, the rich got lots richer. The cost to the market changed little, staying at around thirty bucks a barrel.

The government allowed this because they make more tax on higher priced fuels, it is a percentage that is charged. They allowed the people to get raped so they could get more to fund their projects. The CEOs of oil companies were investing privately in the oil market and got really rich and also paid less taxes on what they earned. The stockholder of the oil companies got a modest return, only on the price of oil going into speculation. If you tried to get into this market, you better know the right people, you can buy cheap and always make good profits, but remember if they don't like you you are stuck with the oil and the company will not buy it back from you. They can say that the market is flooded and you sit on the oil with no buyer.

The oil market is one big scam where some people used to make three hundred percent on their investment every couple of months. Enough to make sure they could donate to campaigns without a problem. The money they made was taxed at around thirty percent maximum I think. They had ways to shelter their income from paying taxes though.



posted on Dec, 11 2015 @ 01:01 PM
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a reply to: jaws1975

Yes, but Russia is dangerously tempting a revolution if they try this. Saudi has the US behind them, so they will be fine as long as the oil keeps flowing to the US. The article points this little gem of a statement out

“The biggest danger is that the reserve fund will be exhausted by the end of 2016. They will then have to monetise the deficit or cut real spending by another 10pc. They can’t cut defence so that leaves social welfare,” he said.


Russia will cut social welfare over the defense budget. What do you think the people of Russia will do when there is no food?



posted on Dec, 11 2015 @ 01:09 PM
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everyone losses, nobody wins, yet each power is dependent on the source of income from their nation. too many new players flooding the markets with oil in the last 5 years. us is closing shop on much shale. expect the predictions to not hold true same as they were false 10 years ago or 5 years ago. whatever is predicted will not come e true, because the system is too complex and dynamic to be rationally understood with accurate predictions. one major unexpected change flips the script entirely, and that happens too frequently.



posted on Dec, 11 2015 @ 01:12 PM
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I believe Russia has more of an advantage in the sheer size, and diversity of it's many regions.....mining, oil, food production, manufacturing, etc...all could ramp up on a massive scale.



posted on Dec, 11 2015 @ 01:12 PM
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a reply to: Vector99

Russia will probably just end of making some sweetheart deals with China to keep their economy afloat.



posted on Dec, 11 2015 @ 01:18 PM
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originally posted by: jaws1975
a reply to: Vector99

Russia will probably just end of making some sweetheart deals with China to keep their economy afloat.


good call - wouldn't be the first time



posted on Dec, 11 2015 @ 01:24 PM
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originally posted by: jaws1975
a reply to: Vector99

Russia will probably just end of making some sweetheart deals with China to keep their economy afloat.

Well that's obvious, but it will be more beneficial to China than Russia as usual. Russia will have no choice but to accept any deal China offers them. It almost becomes a case of cutting off one's nose to spite their face.



posted on Dec, 11 2015 @ 01:25 PM
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originally posted by: jimmyx
I believe Russia has more of an advantage in the sheer size, and diversity of it's many regions.....mining, oil, food production, manufacturing, etc...all could ramp up on a massive scale.


They'll need to. I've noticed on Canadian news, talk of more finished end products need to be brought back in the country. We export grain and are paying a fortune to get back cereals, pastas, etc. More manufacturing needed to weather the low resource prices. Oil was below $35 this morning.

If Canada needs to change our food production from growing to end product, so does Russia. It's good they have the land space.



posted on Dec, 11 2015 @ 01:25 PM
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OPEC and Russia cut a deal a year ago to cut production but, Russia broke it. Add to that Libya's faster than expected transition to peace thus leading to more oil being produce than was thought, the threat of ISIS receding in Iraq meaning more oil being produced than predicted and with end of sanctions Iran's oil about to pour into the market and OPEC and everybody else is just pumping like crazy. For places like the Gulf States this will mean a cut on some of that massive spending they do but, they will be fine. Nations like Venezuela, Nigeria and Russia are not doing well and will do only worse. OPEC members Saudi Arabia and Angola both surpassed Russia in sales to China doing more to corner that market. Most of Russia's oil is sold to Europe where Iran will look to grab a market share.



posted on Dec, 11 2015 @ 01:44 PM
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a reply to: Vector99

China and Russia are allies, I don't see China abusing that relationship.

The west are the desperate ones, do you remember John Kerry saying that the petrodollar was at risk of collapsing if the Iran deal didn't go through?

Syria is an act of desperation as well, they need that pipeline to keep their petro scheme going.



posted on Dec, 11 2015 @ 01:45 PM
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As a Russian with a university degree in economics, I can confirm the things Vector99 wrote: we've got a BIG hole in our federal budget already and I am absolutely horrified thinking about the time when we run out of reserve funds (according to forecasts, they will be enough for two years only).

And I lay the main blame in such situation on our own authorities.

P.S. Speaking (in particular) about Saudi Arabia, don't forget that they have significantly lower cost of oil production and this is a huge advantage in price wars.



posted on Dec, 11 2015 @ 01:51 PM
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a reply to: jaws1975




Saudi Arabia may be in worse shape than Russia.
In a lot of ways . SA uses Tankers while Russia uses pipe lines . SA has lots of sand .Russia has lots of minerals and they have a technology that SA does not . Russian food exports compared to SA ?? SA fresh water compared to Russia ?? Aside from oil the only thing SA seems to export is terrorism . I think there is a mighty big flock of Chickens going to go home to roost in SA ....



posted on Dec, 11 2015 @ 02:01 PM
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originally posted by: jaws1975
a reply to: Vector99

China and Russia are allies, I don't see China abusing that relationship.

The west are the desperate ones, do you remember John Kerry saying that the petrodollar was at risk of collapsing if the Iran deal didn't go through?

Syria is an act of desperation as well, they need that pipeline to keep their petro scheme going.

China and the US are allies too. Who do you think buys all the Chinese crap? To be honest, China would most likely love to see Russia keep on the path they are, making China the #2 power in the world.



posted on Dec, 11 2015 @ 02:04 PM
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originally posted by: the2ofusr1
a reply to: jaws1975




Saudi Arabia may be in worse shape than Russia.
In a lot of ways . SA uses Tankers while Russia uses pipe lines .

It wouldn't surprise me one little bit if Russia keeps presence in Syria to prevent the Qatar pipeline that we start seeing "terrorist attacks" on Russian pipelines.



posted on Dec, 11 2015 @ 02:05 PM
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a reply to: grantbeed

Russia is working on their new budget for 2016 and beyond. Russia is planning for $40.00 a barrel for the next 7 years.



posted on Dec, 11 2015 @ 02:23 PM
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originally posted by: MrSpad
OPEC and Russia cut a deal a year ago to cut production but, Russia broke it.

Can you provide a source of this information?


originally posted by: MrSpad
Add to that Libya's faster than expected transition to peace.

What? "Transition to peace"? Thanks to the western intervention to the sovereign country, it turned from one of the richest state in Africa into the destroyed one.




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