Russian financier and blogger Slava Rabinovich believes that Russia and its President Vladimir Putin in conflict with OPEC expects “something much more serious” for the Ukrainian army in 2014.
Russian President Vladimir Putin made a mistake by not agreeing with OPEC members on oil production. This opinion was expressed by the Russian financier and blogger Slava Rabinovich to the Facts in an interview that was published on March 26.
“Now, having unleashed a war against Saudi Arabia and other OPEC members, Putin most likely does not realize who he is against this time. This is not the 2014 Ukrainian army, but something much more serious,” he said .
According to the financier, the current situation is similar to the story that happened with the Soviet Union in the last years of its existence.
“Saudi Arabia can easily increase oil production by about 2 million barrels per day. And two days later, the governments of several other countries in this region followed suit and also announced an increase in oil production. Many people think that it’s by such actions they once conspired with [на тот момент президентом США] Ronald Reagan helped destroy the Soviet Union, “Rabinovich said.
He believes that this was not a decisive factor for the collapse of the USSR, “but one of the most important.”
“The USSR went bankrupt not only for the long-term reasons for the failure of the socialist economy, but also because a very long period of rising oil prices ended under Brezhnev, which provided the so-called“ Brezhnev stability. ”However, this alleged stability was actually stagnation. if it weren’t for high oil prices, the inefficiency of the socialist economy would have manifested itself much earlier, “Rabinovich explained.
The fall in oil prices has continued since early March. The main reason was that Russia and the Organization of Petroleum Exporting Countries could not agree on new restrictions on the level of oil production. By March 9, the price of Brent oil fell by 30% to $ 33 per barrel, which was the maximum daily drop since 1991, when the Gulf War began. On the evening of March 18, the price of Brent oil fell to a 17-year low of $ 25.4 per barrel.
As of the evening of March 19, oil of the Russian Urals brand fell to a minimum since February 2002 – $ 18.64 per barrel.
Amid unsuccessful negotiations, Saudi Arabia, according to Bloomberg sources, decided to “enter into a total price war” and increase production from 9 million to 12 million barrels per day. This, according to analysts polled by the agency, “will lead to chaos in the oil market.” In addition, Riyadh is trying to oust Russian Urals brand oil from the European market by offering to triple its own supply of Arab Light at great discounts, making Urals uncompetitive.