Quote:
Originally Posted by Reef Supplies
The cost of crude was pushed down to strangle Russia. Once the crude goes back up, the USD will drop once again. This is crap, the USD is NOT worth this much.
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Russian oil is actually a small part of the global oil market. The biggest consumer of oil is the US, and Canadian oil has made (by far) the largest gains in that market, most of which was taken from Saudi oil. Plus, Canadian oil is now reaching world markets in Europe and Asia in significant numbers and was projected to take even more market share from the Saudi's. In contrast, Russia has seen a slow, predictable growth in oil exports.
Ideally, the Saudi's would like to decrease production of Canadian oil from oilsands and American shale. However, shale is a fast return project and can be started and stopped at any time, so oil prices won't have much of an effect on production over time. But low oil prices for about 3-4 years should have a significant effect on Canadian oilsands development, enough to allow the Saudi's to regain most of what they lost. They can afford to have oil as low as $15/barrel and still make significant profit... I don't see oil going back up any time soon