The Collapse of the Ruble?

[Imperial Nilfgaard]

There is a conspiracy afoot to tank the Russian economy by causing oil prices to plummet. It is a plan concoted in Riyadh though I bet the USA is also involved..

And, why do you believe in something so irrational?

The Saudis are mad because of Russian and Iranian support for legitimate President of Syria, Bashar Assad. They know that dropping the price of oil and forcing a global glut hurts both of these rivals' economies. They wish to hurt them and prepare them for Western sponsored regime change.

If the ayatollahs are overthrown it will be the best day for the Saudi monarchy since they found the black gold.

The US is producing more oil to do the same. On the one hand they want to gain market share over Saudi Arabia, but they also see the benefits of weakening the nations that dare stand up to them.

It is true that in an economic sense Saudis and USA are rivals but they are both gleeful frenemies who are all to happy to see Russia and Iran killed in the crossfire.

[Emerald-Springs]

Good, maybe I can afford a nice little dacha soon.

[The Cold Place]

And, why do you believe in something so irrational?

The Saudis are mad because of Russian and Iranian support for legitimate President of Syria, Bashar Assad. They know that dropping the price of oil and forcing a global glut hurts both of these rivals' economies. They wish to hurt them and prepare them for Western sponsored regime change.

If the ayatollahs are overthrown it will be the best day for the Saudi monarchy since they found the black gold.

The US is producing more oil to do the same. On the one hand they want to gain market share over Saudi Arabia, but they also see the benefits of weakening the nations that dare stand up to them.

It is true that in an economic sense Saudis and USA are rivals but they are both gleeful frenemies who are all to happy to see Russia and Iran killed in the crossfire.

I am not going to disagree with what you said, but I will say that in the US and in Canada there are huge, and very expensive, shale and tar sands projects that rely on high oil prices for their continued existence.
Saudi Arabia now has a good choke-hold over said projects.

[Kelinfort]

And, why do you believe in something so irrational?

The Saudis are mad because of Russian and Iranian support for legitimate President of Syria, Bashar Assad. They know that dropping the price of oil and forcing a global glut hurts both of these rivals' economies. They wish to hurt them and prepare them for Western sponsored regime change.

If the ayatollahs are overthrown it will be the best day for the Saudi monarchy since they found the black gold.

The US is producing more oil to do the same. On the one hand they want to gain market share over Saudi Arabia, but they also see the benefits of weakening the nations that dare stand up to them.

It is true that in an economic sense Saudis and USA are rivals but they are both gleeful frenemies who are all to happy to see Russia and Iran killed in the crossfire.

Considering how much it actually costs to extract and produce tar sand and shale oil, this would negatively affect the U.S. I don't think, pragmatically, the US can afford to see Bashar and Iran crumble into chaos. This would throw the region into yet more political uncertainty and warfare.

More likely is Saudi Arabia attempting to secure their long term security from foreign production in Russia, the US, and Canada, by creating a glut to strangle production from these nations. The OPEC cartel wants to retain its supremacy by enacting scorched earth in the short term.

[Sdaeriji]

Heard on tv that US oil producers would still be pumping oil at round $40 dollars a barrel. That would be bad for Russia and Venezuela. But of course, that's what you get for not diversifying your economy.

But some think this is happening because of the following.

Read this - http://www.examiner.com/article/russia- ... mic-policy

$40 a barrel is where US interests are going to start getting squeezed out. Which is exactly what OPEC wants.

[Kalifati Arab shqiptar]

It will end with the fall of Putin. The West won't back out. Finally the West showed Russia, that their bullets and weapons against Ukranian and Syrian people will cost more to them than the ones that are targeted to.

[Nickel Empire]

Good they deserve it.

Who are you referring to with "they"?

The Russian government or Russian people?

Probably both.

[Sebastianbourg]

Who are you referring to with "they"?

The Russian government or Russian people?

Probably both.

What's wrong with the Russian people?

[Rio Cana]

While in the oil producing nations are losing money, those that are dependent on oil are saving plenty of money which can go to other projects which can better help there economies.

[United Marxist Nations]

I will be laughing at those hoping for Putin's opposition to gain power if the economic impacts of their sanctions bring my horse in the race to power. I also imagine I would be most jubilant.

Soon.

[Arkolon]

While in the oil producing nations are losing money, those that are dependent on oil are saving plenty of money which can go to other projects which can better help there economies.

Precisely. The Economist reckoned world GDP would rise by a few trillion dollars as people spend less on petrol and more on other things. How safe this all is for the environment, however, is another question.

[Chestaan]

I'm going to Russia as a Dutchman in one week, should I be glad or worried?

Glad, you will get more Rubles for your Euros.

Do the rest of you guys think that the Ruble has passed the point where it is impossible to convince the market to back it and that it will eventually fall?

[Arkolon]

I'm going to Russia as a Dutchman in one week, should I be glad or worried?

Glad, you will get more Rubles for your Euros.

Do the rest of you guys think that the Ruble has passed the point where it is impossible to convince the market to back it and that it will eventually fall?

If I could, I'd probably advise to invest in the ruble. This shale/petrol USA/OPEC standoff can't last forever, and the second either of them crack the ruble will bounce back up again. However, can we really assume that the standoff will last forever? If not, then I imagine the ruble has indeed become strategically unmarketable.

[Nickel Empire]

Probably both.

What's wrong with the Russian people?

From what I've seen in the news and the paper they think it is good that Russia is trying to extend its hold over every country in the former Soviet Union.

[The Emerald Dragon]

Unfortunately, this'll only breed support for Putin.

[Chestaan]

Glad, you will get more Rubles for your Euros.

Do the rest of you guys think that the Ruble has passed the point where it is impossible to convince the market to back it and that it will eventually fall?

If I could, I'd probably advise to invest in the ruble. This shale/petrol USA/OPEC standoff can't last forever, and the second either of them crack the ruble will bounce back up again. However, can we really assume that the standoff will last forever? If not, then I imagine the ruble has indeed become strategically unmarketable.

The thing is it might not need to last forever. A few more days of falls like this might cause a full on collapse. You make a good point though, it could be a perfect trough point to start buying at. Predicting the market is a bitch though and I'm not willing to risk my money on something so uncertain

[Insaeldor]

Lots to about recent US oil production dropping oil prices and OPEC basically going trying to lower prices in order to sink america oil industries. Russian and a bunch of non-OPEC oil producers or economy's based heavy on oil and gas production are caught up in the middle of it all. I don't feel sorry for russia they did this to themselves after all what without diversifying their economy and all.

[Arkolon]

If I could, I'd probably advise to invest in the ruble. This shale/petrol USA/OPEC standoff can't last forever, and the second either of them crack the ruble will bounce back up again. However, can we really assume that the standoff will last forever? If not, then I imagine the ruble has indeed become strategically unmarketable.

The thing is it might not need to last forever. A few more days of falls like this might cause a full on collapse. You make a good point though, it could be a perfect trough point to start buying at. Predicting the market is a bitch though and I'm not willing to risk my money on something so uncertain

Ruble trends are brent crude trends in currency form; low petrol prices signify a weak ruble, and petrol has bounced back before. This fall is considerable, sure, but I don't think it will result in another revolution, especially with a guy like Putin at the helm of it all. It'd be the wrong month, anyway.

You know what, I'll do it anyway. I'm going to go for €100, or 8512.71 rubles. If the price jumps back up to 0.02 ruble to euro, I'll have myself €70 extra. Sounds like a bargain.

[Pantokrators]

Can someone explain to the ignorant people in economics is this caused by the recent US sanctions or by something else?

[Czechanada]

The United States will be pleased to offer amnesty to your wayward currency.

[Calimera II]

Can someone explain to the ignorant people in economics is this caused by the recent US sanctions or by something else?

I would say that it was caused by speculators. Which of course, are influenced by the sanctions.

[Arkolon]

Can someone explain to the ignorant people in economics is this caused by the recent US sanctions or by something else?

Russia relies heavily on petrol exports. The US is expanding its fracking operations, and now pumps out 9.1 million barrels of petrol a day. Saudi Arabia pumps out only a little more, and it is the global market leader. Saudi Arabia is reasonably upset because all of this petrol means it has to cut prices to stay competitive: it having great influence in OPEC helps in this regard. Thus Saudi Arabia slashed prices trying to run the Americans out of business, and the Americans are still pumping all they can just to stay competitive and to challenge the Saudis. It's a very interesting modern phenomenon, and it's giving all of us really cheap petrol.

Caught in the crossfire is Russia, whose currency has become worthless as a result of worthless exports. The US sanctions did minimal damage in this regard.

[Sebastianbourg]

Can someone explain to the ignorant people in economics is this caused by the recent US sanctions or by something else?

A mixture of various things really. It's not like the Russian economy wasn't in a very good state before the sanctions were implemented or the price of oil plummeted.

[Sebastianbourg]

Can someone explain to the ignorant people in economics is this caused by the recent US sanctions or by something else?

Russia relies heavily on petrol. The US is expanding its fracking operations, and now pumps out 9.1 million barrels a day. Saudi Arabia pumps out only a little more. Saudi Arabia is upset because all of this petrol means it has to cut prices to stay competitive: it having great influence in OPEC helps in this regard. Thus Saudi Arabia slashed prices trying to run the Americans out of business, and the Americans are still pumping all they can just to stay competitive and to challenge the Saudis. It's a very interesting modern phenomenon.

Very interesting indeed. Let's see how it all turns out.

[Informationland]

I am very glad for this.