Technical & Fundamental Oil Reports Specialists

Follow us

Belgium invaded

Published Thursday, March 27th, 2014

Brussels was occupied yesterday. Not by Russia but by President Obama and his 900-strong entourage. Travelling light is not something US Presidents are in the habit of doing. His message was that if you want our energy then you must do something about yours (ie get fracking) and if Putin makes another territorial move sanctions will be a lot deeper, and include energy.

Strong talk as always, red lines as always. This time he and his EU buddies surely cannot back down which leaves our immediate destiny in the hands of President Putin. He could take geopolitical risk to such a level that not even a blinkered stock market can ignore it. He could plunge not only his own country but Europe and beyond into a recession. Will he lash out or back off?

If President Putin worries at all about the Russian economy the signals are not good. The World Bank believes it could contract this year by as much as 1.8% in its “high risk” scenario. In its low risk scenario growth will fall from a pre-Crimea forecast of +2.2% to +1.1%.

To read the rest of the report, please click here 

Posted by David Hufton