Technical & Fundamental Oil Reports Specialists

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All roads lead to Moscow

Published Friday, October 9th, 2015

President Putin commands the global stage. If it is attention and headlines he craves he is certainly getting them, the world is dancing to his tune. If he wanted to remind the world that Russia is powerful, virile and prepared to act decisively he has succeeded. If he wanted to show that Russia will employ all options in support of an ally he has done that. What would you prefer, an ally that will go all the way or one who talks the talk but will only go half way, allowing red lines to be crossed at will?

Has Putin embarked on the classic strategy of foreign adventurism to distract the Russian population from a brutal recession and the hardship that his Presidency has brought on them? The IMF believes that the Russian economy will contract by 3.8% this year. He cannot have expected that the sanctions imposed as a result of his annexation of Crimea and support of rebels in Eastern Ukraine would be so solid, lengthy and damaging. Unluckily for him their effect has been amplified by the collapse in oil prices, which he may well see as a Saudi/US conspiracy. He must be a very angry and resentful man and therefore extremely dangerous and unpredictable. Sanctions on a superpower are humiliating.

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Posted by David Hufton