Russia feels pain while it prepares for ‘Years’ of Low Oil prices

Russia feels pain while it prepares for ‘Years’ of Low Oil prices


Welcome to illuminati silver, we tell you
the truth about silver. Today is Wednesday 13th January 2016 and we
are briefly covering the issue of the recent Slump in oil prices and its effect on Russia.
Yesterday we produced a video highlighting that Brent Crude fell as low as $30.43 a barrel
and that we expected it to fall further. Well today it actually fell below the $30 mark
to $29.96 and marginally recovered to $30.22. With oil prices now having fallen some 70%
over the past 15 months we ask what sort of effect has this had on Russia?
Taxes from oil and gas represent approximately 50% of the Russians Government revenue. It
is believed by many, that knowing this, Saudi Arabia and the Western powers are deliberately
reducing oil prices in order to punish Russia where perhaps sanctions have only had a limited
effect. Whether this is the case or not, it is no
secret, that officials in the Kremlin are extremely worried. Dimitry Medvedev, Russia’s
Prime Minister warned today, that falling oil prices could force his country to revise
its 2016 budget which incidentally was only announced last October but was based on a
$50 a barrel oil price. Reuters have reported that Government departments
have been ordered to cut spending by 10% for the second year running. The Russian Minister
of Finance has said that their new budget should be revised to assume an oil price of
$40 a barrel. While the Economy Minister warned that Russia faced a long period of low commodity
prices with oil at $15 or $20 a barrel. In fact the BBC has quoted him as saying today
“The biggest risk is that there will be low prices for a long time – that is for
years, for decades”. Whilst most analysts do not agree that such
low prices will last that long, they certainly agree that very low prices are indeed quite
likely over the coming year; with Morgan Stanley predicting $20 oil, Royal Bank of Scotland
predicting $16 oil and Standard Chartered Bank predicting a crash down to $10 a barrel.
With the Russian Finance Minister stating that the Russian budget could only be balanced
at an oil price of $82 a barrel and his colleagues creating a budget based on $40 whilst others
predict prices may fall to perhaps half of that, there is no doubt that Russia has more
pain to come. Russian interest rates are currently standing at 11% and inflation at 15% (though
it is hoped that it will fall to 4% by next year). With its balance of trade for October
showing a surplus of $10 billion though higher than August and September it is considerably
lower than all of the preceding months for 2015.
It shall be interesting to see if Russia will continue to maintain its gold purchasing at
the same rate as previous months, and to see how their economy fares over the first half
of 2016. For interest gold is standing at $1095 up
some 0.7% on the day and silver is currently back over the $14 level standing at $14.16
up around 1%. We hope you have found this video interesting
and informative and if so, please give it a thumb up and share it on twitter. Also kindly
visit our website regularly at www.illuminatisilver.com Disclaimer: Illuminati Silver owners come from a background
of Banking, International Wealth Management and Economics. Having now retired from these
worlds we are not qualified to give investment advice. Therefore, this and other productions
must not be deemed to be giving such advice and merely represent the personal views of
its owners.

25 Comments

  1. It seems clear now that the West are keen to provoke Russia into a large scale war… we've run out of ideas how to fix the broken financial system. Knock it all down and start again. Thankfully… Putin knows this all too well.

  2. Jan 13, 2016

    Stock Market down 1600 since its last high on Dec 16, 2015.
    Oil briefly falls below $30.
    Silver and Gold starting to percolate.

    I still believe Oil is a good long term buy. Much better than Gold. Gold is unlikely to triple and if it does that means the apocalypse is at hand and you have bigger things to worry about. Oil could triple but given that OPEC screwed itself by holding oil well above $100 a barrel so long it made development of wells and infrastructure here in the states and in Canada profitable. Now those wells and infrastructure are idle but they already exist. As soon as Saudi Arabia tells the rest of OPEC to raise the price and it reaches a certain level then we go back to pumping. A smarter move would have been to keep it high, let us run out, and then go even higher. Just as our (U.S.) smart move would be to keep the wells capped, buy up all of Saudi Arabia and everyone elses oil and then when they run out we still have some to fight WW3 or WW4 whichever the case may be at the time. That's EMPIRE STRATEGY.

    In the meantime I wouldn't start to worry about the fake DOW unless it drops another 1600 between now and Feb 13. If it dumps another 1600 in the next couple weeks then I would freak out. The question is how will you know if this is THE GREAT DUMP many have been expecting? Watch commodities, real estate, and anything REAL. When all this imaginary wealth starts flooding into REAL WORLD ASSETS then I would start to worry and prepare.

    There are a lot of chickens out there in one form or another that have yet to come home to roost. If silver goes to $20 and gold to $1250 before years end I would not be surprised. If we make it to election day in the U.S. without a major economic shocker I will be surprised. If Trump or Clinton are elected I expect the apocalypse to start immediately.

  3. Punishing Russia by Western powers and the Saudis on oil is so imprecise and such a blunt instrument, that we are all being  beaten up by  this.  Even petrol at the bowser is not all that cheap considering the drop in global prices.    The Russians could not be all that bad to warrant all this.   Siding with the Saudis is about as low as the western powers can go in my view.

  4. Okay I gotta tell you all something weird that happened minutes after I made my last post. I was charging my phone which had died. I was waiting for it to get enough of a charge so I could turn it back on. The screen flashed on and it said October 29 11:41.

    I don't know about the 11:41 part but we all know what Oct 29 is. BLACK FRIDAY!

    Freaking Weird

  5. Max Keiser was talking about Russia doing de-dollarification – extricating itself from further financing US wars, etc. I think Russia has a long term outlook and while things will be tough for the near term, they should be setting themselves up long term. I also think that when the dollar starts to collapse, it will catch a lot of people off-guard, and genuinely surprise the world.

  6. Russia has some pain to deal with, but they will be ok, they went through a lot worse last 30 years. No amount of pain will deter Putin. Meanwhile, gas is still $3.50 a gallon in my area.

  7. 50% taxes from oil wow. Putin not a man who takes bad news well. could reduce palladium supply slowing the auto industry even more. might give the U.S incentive the help reach a agreement with Saudis.

  8. will oil price affect the silver toward the downside?

    how low can the price of the silver go this year in your opinion?

    Thank you.

  9. The three leading oil producers in the world are Russia, US and Saudi Arabia. If these low oil prices are to punish Russia, how's it working for Saudi Arabia? Or how about for us here in the US? And what about oil derivatives? Who's on the losing end of that? This is a twisted and demented game.

  10. Russia's cost of production is high so I'd say the intention is to draw a little blood and for Saudi Arabia, I just cannot wait to see them introducing some fiscal policy. Goodbye sharia and welcome to the real world! Kerching!

  11. I don't know what's wrong with governments. Every government seems to be working hard to bankrupt itself. A country like Saudi Arabia without any manufacturing capability has no interest in lowering oil prices unless the druglords in the kingdom of Arabia are looking for trouble.

  12. illuminati Silver what is your explanation for crude oil aggressive rally to 147USD from beginning in 2007 till mid 2008 (along with many other industrial based commodities)? That move still does not makes sense to me because world economy was already in recession in the beginning of 2008.

  13. I feel for the Russian people but there was a moment in time last year when I thought ISIS had or nearly United the world against them. But it seems everyone's agendas are different. We talk world peace but do not act on it to a degree in favour for all but only for us… The individual nations etc. The oil price in my opinion is finally at a fair price but at the cost of others and many lives over the years. A very sad story which hits a nerve. It's just a spoon full of trouble.

  14. Russia is still better of than when they were under Boris, or as the USSR. They can feed their people. Their people back their leadership. They will weather the low Fossil Fuel prices I believe.

  15. Good video, with demand down and increased pumping of oil Russia will be feeling the pain as will other countries. The USA are making a mistake with Russia if they want to bring them into line as this will probably have the opposite effect and may cause a new sense of nationalism of the population a dangerous thing in a country where communism still lurks in the background. I have to admit the oil play is like a chess game with so many factors, don't right off Yeman and a major war to the Saudi under belly if the oil price gets very low for a long time.

  16. Good video, with demand down and increased pumping of oil Russia will be feeling the pain as will other countries. The USA are making a mistake with Russia if they want to bring them into line as this will probably have the opposite effect and may cause a new sense of nationalism of the population a dangerous thing in a country where communism still lurks in the background. I have to admit the oil play is like a chess game with so many factors, don't right off Yeman and a major war to the Saudi under belly if the oil price gets very low for a long time.

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