Tuesday, December 30, 2008
The Coming Manufactured Energy Crisis in Europe
Russia's economy has crashed. Dozens of unconnected and unrelated groups are demonstrating across the vast country, protesting the loss of their jobs or decline in earnings. The decline in energy prices has hit Russia harder than any other country.
Russia has no choice but to MANUFACTURE a Natural Gas crisis in Europe. Russia lives and dies on the price of energy. My bet is Russia would rather live. Russia's biggest company, Gazprom, is mired in debt and Russia cannot afford for this company to come to any more difficulty.
Maybe they will blame it on Ukraine. Maybe they directly extort from Western Europe. I can come up with a dozen scenarios. Russia has no control of world Oil prices, but they sure can influence Natural Gas prices in Europe where they enjoy a near monopoly.
Not that I have any idea how to play this in the market. I don't. But it is something to think about.
Mentatt (at) yahoo (d0t) com
Posted by The Short Story Man at 4:46 AM