Putin's War on the U.S.
Vladimir Putin's price war with Saudi Arabia over oil is causing significant damage in the U.S. financial markets and the whole fracking industry in the United States could be wiped out.
See the Bloomberg story: Putin Dumps MBS to Start a War on America’s Shale Oil Industry. “
The Kremlin has decided to sacrifice OPEC+ to stop U.S. shale producers and punish the U.S. for messing with Nord Stream 2,” said Alexander Dynkin, president of the Institute of World Economy and International Relations in Moscow, a state-run think tank.
Nord Stream 2 is a new export gas pipeline running from Russia to Europe across the Baltic Sea. The article, THE BATTLE OVER NORD STREAM 2 : Gazprom Attempts to Defy U.S. Sanctions, by Margarita Assenova says:
If built, Nord Stream 2 would direct to Germany 70 percent of all Russian gas supplies to Europe, thus diverting almost all Russian natural gas transit from Ukraine directly to Western Europe. In the process, Central and Eastern European gas markets would be encircled by Russian pipelines from the east and the west and become inaccessible to alternative sources of gas supplies.
As a result, in order to counter Putin, Trump must assist the U.S. oil and gas industries. See the Washington Post story White House likely to pursue federal aid for shale companies hit by oil shock, coronavirus downturn
Leave a Reply.