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Ref: MandBinc
I think you underestimate the enormity of events in Russia. Not a single person there believes in the rouble, and all efforts will be done, by hook or by crook, to get hard currency. Shutting wells is not really an option for any company who has (local) costs in worthless money , but (export) revenues in hard $$.
What comes out of the ground , or for that matter, what comes out of the refinery is basically free of charge compared to the $$ you can earn in export ..........whatever you export.
On top of the Russian economy ( read: local demand )
collapse, Asian refiners all are getting very serious now in cutting refinery runs, sometimes to 50% of normal plant thru put. Result: much lower demand of crude by those refiners which has its immediate effect on the price for crude, especially Middle East crude that predominantly flows to Asia.
No folkes, all signs are still negative for crude ....
only Scuds, Saddam Hussein, cold winters and other
extreme events can turn around that black gold.
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