By Benjamin J. Butler
I have always been puzzled as to why OPEC is based in Vienna, but I guess that is the subject of another geopolitical essay. The speculation all last week was whether the Russians would be able to persuade OPEC to cut production and try to stabilize the big fall in energy costs.
This is one of the back-stories for the oil markets ...
Geopolitically, it is said that Saudi Arabia and the US have crushed energy prices on purpose in order to put additional pressure on the Russians. The last time something like this happened was 1985, as Pravda reported back in April (http://english.pravda.ru/world/asia/03-04-2014/127254-saudi_arabia_russia_obama-0/):
There is a precedent [for] such joint action that caused the collapse of the U.S.S.R. In 1985, the Kingdom dramatically increased oil production from 2 million to 10 million barrels per day, dropping the price from $32 to $10 per barrel. [The] U.S.S.R. began selling some batches ... Log in or subscribe to continue reading.