oil as a weapon...

I posted this on my trapping forum. Russia isn't as big of a deal in the scrap metal world as it is in the wild fur market but as it has been mentioned in other threads over time, low oil prices and a strong dollar aren't a scrap metal recycler's friends...

An old professor of mine was down at my facility visiting the other day. Sooner or later the conversation got around to cheap gas prices. I expressed my opinion it was probably due to lower global demand because of the economic slowdown and increased production. He countered that the high production in the face of lower oil prices might be on purpose in some hardball geopolitics to punish Russia. I know this guy is a big NYT reader and probably saw it there first but I found this in Chicago Tribune. Interesting theory, and I can see it being pushed as a policy in the U.S. and Saudi Arabia. But I also took several semesters of Russian history in college and the Russia people have had many centuries of living under despotic leaders and not having much control over their daily lives (one reason why alcoholism is so rampant among Russian men) so the thought that the people's displeasure is some how going to bring pressure on might-mite Putin and the syndicate that runs the country to reform their ways is probably wishful thinking.



Bottom line is probably continued low prices for motor vehicle fuel for North American consumers and crappy prices and/or no markets for trapper's fur. Its still fun, right??!!

Are the U.S. and Saudi Arabia conspiring to keep oil prices low? - Chicago Tribune