Arnold, CA…All of us have heard the expression of “Follow the Money”. Why haven’t we heard about this during the Ukraine crisis? My gut and back of an envelop calculations lead me to believe that all of this Ukraine business has just been a ruse to drive up oil prices.
If we just say the current price is $95 that is $52 dollars per barrel more than in November of 2020. Russia on average produces 10,000,000 barrels per day. So just from oil Russia making $520,000,000 per DAY more now than in 2020.
This doesn’t count natural gas sales where Russia is the largest vendor to the EU. Natural Gas prices have raised by a commensurate amount as oil.
Many have said that Russia under Putin is a criminal gang with a fuel pump. Would a criminal gang threaten, sabre rattle and bluff on invading their neighbors for $1,000,000,000 per day? I think we all know that answer.
The Russian economy is basically the oil economy. If Putin is to remain in power he can’t have the oil economy collapse.
He also knows the clock is ticking on his stranglehold on the energy markets with the push to green energy.
He needs cash and needs to maximize revenue over the next few years before the balance of energy power changes. He will do anything to create an energy “crisis”!
If oil prices collapse again Putin’s grip on power weakens right along with them.