US SANCTIONING RUSSIA IS BACKFIRINGI disagree that the US is driving down the oil price. I also disagree that the Russian economy is in tatters.
You can’t believe Reuters or Bloomberg. The ruble goes down, and the oil price goes down. This is the news: There is no change in the oil price in ruble terms.
My contact in Russia, who has a son in Moscow, asked him how the import prices are affected. They have sudden moves up to 10%, but they go down in a couple of weeks. That means the Russians are cleverly managing their reserves with 160 down to $130 Billion in Treasury Bonds to manage the foreign imports that they pay for with dollars.
The Russians have no change in their oil revenues in ruble terms, while…