Russia is battening down the hatches for a Biblical collapse in oil revenues, warning that crude prices could stay as low as $40 a barrel for another seven years.

Maxim Oreshkin, the deputy finance minister, said the country is drawing up plans based on a price band fluctuating between $40 to $60 as far out as 2022, a scenario that would have devastating implications for Opec.

It would also spell disaster for the North Sea producers, Brazil’s off-shore projects, and heavily indebted Western producers. “We will live in a different reality,” he told a breakfast forum hosted by Russian newspaper Vedomosti.

The cold blast from Moscow came as US crude plunged to $35.56, pummelled by continuing fall-out from the acrimonious Organisaton of Petrol Exporting Countries meeting last week. Record short positions by hedge funds have amplified the effect.

Bank of America said there was now the risk of “full-blown price war” within Opec itself as Saudi Arabia and Iran fight out a bitter strategic rivalry through the oil market.

Brent crude fell to $37.41, even though demand is growing briskly. It is the lowest since the depths of the Lehman crisis in early 2009. But this time it is a 'positive supply shock', and therefore beneficial for the world economy as a whole.

The International Energy Agency said in its monthly market report that Opec has stopped operating as a cartel and is “pumping at will”, aiming to drive out rivals at whatever cost to its own members. Opec revenues will fall to $400bn (£263bn) this year if current prices persist, down from $1.2 trillion in 2012. This is a massive shift in global wealth.

Russia’s $40 warning is the latest escalation in a game of strategic brinkmanship between the Kremlin and Saudi Arabia, already at daggers drawn over Syria.

The Russian contingency plans convey a clear message to Riyadh and to Opec’s high command that the country can withstand very low oil prices indefinitely, thanks to a floating rouble that protects the internal budget.

Saudi Arabia is trapped by a fixed exchange peg, forcing it to bleed foreign reserves to cover a budget deficit running at 20pc of GDP.

http://www.telegraph.co.uk/finance/economics/12046185/russia-opec-saudi-arabia-bluff-40-oil-price.html

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citizenisb:
It is obvious that all you pro Biafra activists are definitely sponsored. The entire Nairaland was defaced by mindless and stupid articles from you semi literate hirelings. After all the good times in the last administration you now suddenly realize you need to separate when money is no longer coming your way and to escape prosecution for mind boggling theft of money in government coffers.

We all see belong you guys that will do anything for money to your sponsors paying for this agitation just to get at the country, nothing stops you from airing your vies but when you cover a whole blog with only your views it shows the beast in you. Now a post that has no reference to you is where you are posting shit on.

This is why you are continually hates because it is either your way or the highway, just be decent for once in your miserable, greedy, money hungry lives and let others have a voice and opinion seperate from yours. Do not even speak of free speech because you guys by drowning other articles apart from your sick Biafra posts are the worst dictators of all.

Good riddance to bad rubbish!!

Oh, please shut up ..

Russia claims to have the strategic depth to sit out a long siege. It is pursuing an import-substitution policy to revive its industrial and engineering core. It can ultimately feed itself. The Gulf Opec states are one-trick ponies by comparison.

The deputy premier, Arkady Dvorkovich, told The Telegraph in September that Opec will be forced to change tack. “At some point it is likely that they are going to have to change policy. They can last a few months, to a couple of years," he said.

Kremlin officials suspect that the aim of Saudi policy is to force Russia to the negotiating table, compelling it join Opec in a super-cartel controlling half the world’s production.

I guess Buhari is at fault for the fall in oil-price? GEJ who met a brimming treasury loaded with $55billion and over $20b in the ECA watched as his Biafran cohorts looted everything, and he was bold enough to boast he left $1billion in the treasury.
Its normal for this bunch of losers to point at Buhari, I dont even know ONE single Ibo Minister under GEJ who didnt loot the shyt out of the treasury, thats why till today, not ONE single person from this region could convince Nigerian he's a worthy presidential minister.

[s]

lionness:
I guess Buhari is at fault for the fall in oil-price? GEJ who met a brimming treasury loaded with $55billion and over $20b in the ECA watched as his Biafran cohorts looted everything, and he was bold enough to boast he left $1billion in the treasury.
Its normal for this bunch of losers to point at Buhari, I dont even know ONE single Ibo Minister under GEJ who didnt loot the shyt out of the treasury, thats why till today, not ONE single person from this region could convince Nigerian he's a worthy presidential minister.

[/s]

Your mumu no get mate!

ahaika23:
[s][/s]

Your mumu no get mate!

A typical i.diot on the loose! Rather than address what he said, he resorted to name calling! R.etard!

Some posters here and Lot's wife have something in common...

citizenisb:
It is obvious that all you pro Biafra activists are definitely sponsored. The entire Nairaland was defaced by mindless and stupid articles from you semi literate hirelings. After all the good times in the last administration you now suddenly realize you need to separate when money is no longer coming your way and to escape prosecution for mind boggling theft of money in government coffers.

We all see belong you guys that will do anything for money to your sponsors paying for this agitation just to get at the country, nothing stops you from airing your vies but when you cover a whole blog with only your views it shows the beast in you. Now a post that has no reference to you is where you are posting shit on.

This is why you are continually hates because it is either your way or the highway, just be decent for once in your miserable, greedy, money hungry lives and let others have a voice and opinion seperate from yours. Do not even speak of free speech because you guys by drowning other articles apart from your sick Biafra posts are the worst dictators of all.

Good riddance to bad rubbish!!

Why you hate your fellow country men like this now?
Do you know they are not allowed to leave you alone and be on their own

If only Nigeria can target self sufficiency like Russia and start producing 90% of our needs.

read through his post. Nothing connotes hatred from it. Hate is when your kin call Nigerians monkeys and call Nigeria a zoo. Oo have you ever listened to radio Biafra? don't be hypocritical. hate is the new oil in the Biafra. By the way, no one, I repeat Nobody wants biafrans to stay. They can go alone but definitely not with the SS. Our leaders have said we don't biafra , simple.

AlfaSeltzer:


Why you hate your fellow country men like this now?
Do you know they are not allowed to leave you alone and be on their own

lionness:
I guess Buhari is at fault for the fall in oil-price? GEJ who met a brimming treasury loaded with $55billion and over $20b in the ECA watched as his Biafran cohorts looted everything, and he was bold enough to boast he left $1billion in the treasury.
Its normal for this bunch of losers to point at Buhari, I dont even know ONE single Ibo Minister under GEJ who didnt loot the shyt out of the treasury, thats why till today, not ONE single person from this region could convince Nigerian he's a worthy presidential minister.

No need to always narrow it to Pmb vs Gej. The reduction in ECA was also due to falling oil prices and requests by governors who went to court to access the funds. Same reason also for reducing External reserves in both administration.

Millerz:
read through his post. Nothing connotes hatred from it. Hate is when your kin call Nigerians monkeys and call Nigeria a zoo. Oo have you ever listened to radio Biafra? don't be hypocritical. hate is the new oil in the Biafra. By the way, no one, I repeat Nobody wants biafrans to stay. They can go alone but definitely not with the SS. Our leaders have said we don't biafra , simple.

citizenisb:
It is obvious that all you pro Biafra activists are definitely sponsored. The entire Nairaland was defaced by mindless and stupid articles from you semi literate hirelings. After all the good times in the last administration you now suddenly realize you need to separate when money is no longer coming your way and to escape prosecution for mind boggling theft of money in government coffers.

We all see belong you guys that will do anything for money to your sponsors paying for this agitation just to get at the country, nothing stops you from airing your vies but when you cover a whole blog with only your views it shows the beast in you. Now a post that has no reference to you is where you are posting shit on.

This is why you are continually hates because it is either your way or the highway, just be decent for once in your miserable, greedy, money hungry lives and let others have a voice and opinion seperate from yours. Do not even speak of free speech because you guys by drowning other articles apart from your sick Biafra posts are the worst dictators of all.

Good riddance to bad rubbish!!

Of course the bolded is LOVE.

k

.

lionness:
I guess Buhari is at fault for the fall in oil-price? GEJ who met a brimming treasury loaded with $55billion and over $20b in the ECA watched as his Biafran cohorts looted everything, and he was bold enough to boast he left $1billion in the treasury.
Its normal for this bunch of losers to point at Buhari, I dont even know ONE single Ibo Minister under GEJ who didnt loot the shyt out of the treasury, thats why till today, not ONE single person from this region could convince Nigerian he's a worthy presidential minister.

I truly don't understand most of you diabolical imps, igbos has repeatedly say they want to leave Nigeria for you fetish lots and former theor biafra, yet you incestuous evil lots won't allow igbos go, so why are complaining?

It is so easy, allow igbos go with their biafra so Nigeria can be free of looters

lionness:
I guess Buhari is at fault for the fall in oil-price? GEJ who met a brimming treasury loaded with $55billion and over $20b in the ECA watched as his Biafran cohorts looted everything, and he was bold enough to boast he left $1billion in the treasury.
Its normal for this bunch of losers to point at Buhari, I dont even know ONE single Ibo Minister under GEJ who didnt loot the shyt out of the treasury, thats why till today, not ONE single person from this region could convince Nigerian he's a worthy presidential minister.

You are the biggest fool on Nairaland. What a daft and dense brain you have, so suddenly Dasuki is now an Igbo man. You pathetic fools and bunch of hypocrites should do us a favour and jump into the lagoon.

Millerz:
read through his post. Nothing connotes hatred from it. Hate is when your kin call Nigerians monkeys and call Nigeria a zoo. Oo have you ever listened to radio Biafra? don't be hypocritical. hate is the new oil in the Biafra. By the way, no one, I repeat Nobody wants biafrans to stay. They can go alone but definitely not with the SS. Our leaders have said we don't biafra , simple.

stop lying

It is either Russia doesn't understand why OPEC is pumping so much oil or are living in denial. OPEC strstegy is to keep out thr US shale oil producer s from the market else they will all find themselves in a situation where they will lose their market share. Shale oil mining is profitable at $50 per barrel. Low oil prices will kill shale oil producers.

We need to diversify the economy ASAP!!!

There is definitely going to be a devaluation of the Naira in January. Analysts predict 240 Naira to the Dollar!!