How and why the Ruble was driven lower. Nikolai Starikov Nikolai Starikov, writer on geo-politics and international finance, explains the mechanisms of the rubles 2014 fall, the passivity or complicity of the financial authorities, and the end result this is leading to. Attacks against Russia are happening on multiple fronts, including: - Sanctions suspending credit lines from abroad; - Speculators easily manipulating the RUB exchange rates; - False flag atrocities; - The oil price determined by OPEC; - Preparation of a “Patriotic Maidan”. Starikov claims that all of the above is instigated by Washington to defend the dollars supremacy and prevent the rise of the Eurasian Economic Union, which officially comes into existence at the beginning of 2015. https://youtube/watch?v=Un5rsKFo7Xo Youri Carma After having done some extensive research myself I can say that I agree on almost everything Nikolai Starikov sketches the current situation. Extending low oil prices will hit the American shale oil and gas industry very hard. The drilling had been driven by high oil prices and low-cost financing. In the best case scenario, long-term break-even in the Bakken shale oil is at around $100 a barrel. Bottom line: the average US shale oil well is uneconomical even with hedging in place, since most hedging is around $90/bbl and the break-even is $99/bbl. Companies spent $1.30 for every dollar earned selling oil and gas in the third quarter, according to data compiled by Bloomberg on 56 of the U.S.-listed companies in the E&P index. Sources: The Dangerous Economics of Shale Oil zerohedge/news/2014-12-24/dangerous-economics-shale-oil Oil Crash Exposes New Risks for U.S. Shale Drillers bloomberg/news/print/2014-12-19/oil-crash-exposes-shale-drillers-in-risky-three-way-bets.html
Posted on: Mon, 05 Jan 2015 00:11:33 +0000
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