Sunday, November 23, 2014
http://www.economist.com/blogs/buttonwood/2014/11/geopolitics-and-oil
This article shows the relationship between the price of oil, and Russia's willingness to cross borders and invade countries, detailing Afghanistan, Georgia, and Crimea as it's examples. What is seen in graphs in the article is upon Russias invasion of these nations, we see a steep decline in the price of oil. It is speculated that high oil prices give the Russians confidence, and upon their invasion we see an inflated confidence in the price of oil resulting in a crash of the price. This was the soviet unions downfall, and the article notes that Russia's economy is already showing signs of crisis. The Russian ruble is at a low point, and if Russia sees high oil prices as a positive sign for their economy, invasion of Ukraine could spell disaster for the large nation.
Subscribe to:
Post Comments (Atom)
The Russian Ruble's slide has been having major consequences. According to the country's financial minister, the fall has cost the Russian economy over $140 billion.. The fall of oil prices has crushed the Ruble which is backed by the natural resources that Russia provides to the world. The lower demand of Russian oil and economic sanctions are crippling the Russian economy.
ReplyDelete