rupol2000
Gold Member
- Aug 22, 2021
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Now, for some reason, they believe that this is beneficial for export economies like Russia or Saudi Arabia. But in fact, it is primarily beneficial for the United States because oil is traded in dollars, in fact, world oil trade is converted into the welfare of the United States, and besides, in terms of production, the United States is in the tops.
Although there are import costs, this still does not offset the benefits.
Therefore, it is the United States that is the beneficiary of expensive oil. It is likely that the crisis of 2014 was directed primarily at the United States, and this was proved by subsequent political events.
For Russia, oil prices are not critical at all, because there almost all foreign exchange earnings are converted into foreign assets and do not go directly to the economy. For Russia, expensive oil will only mean an increase in gold and foreign exchange reserves, in other words, an increase in capital outflow.
Although there are import costs, this still does not offset the benefits.
Therefore, it is the United States that is the beneficiary of expensive oil. It is likely that the crisis of 2014 was directed primarily at the United States, and this was proved by subsequent political events.
For Russia, oil prices are not critical at all, because there almost all foreign exchange earnings are converted into foreign assets and do not go directly to the economy. For Russia, expensive oil will only mean an increase in gold and foreign exchange reserves, in other words, an increase in capital outflow.