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"The Russian government collects 52% of its revenue from oil and gas taxes, and about 50% of the population are heavily dependent on government transfer payments for their sustenance. Under Putin, the Russian economy has not diversified but remains a nation dependent on petroleum exports.The trouble is that oil prices above $100 a barrel are considered necessary in order to sustain Russia’s current income needs, and looking forward, a triple-digit-price for oil is suspect. As shown in the chart below, WTI was $12 a barrel in 1999 before the credit bubble boom began, and long term secular support remains in the $55 area, some 50% below current levels."
"The Russian government collects 52% of its revenue from oil and gas taxes, and about 50% of the population are heavily dependent on government transfer payments for their sustenance. Under Putin, the Russian economy has not diversified but remains a nation dependent on petroleum exports.The trouble is that oil prices above $100 a barrel are considered necessary in order to sustain Russia’s current income needs, and looking forward, a triple-digit-price for oil is suspect. As shown in the chart below, WTI was $12 a barrel in 1999 before the credit bubble boom began, and long term secular support remains in the $55 area, some 50% below current levels."
by InformedTrades via InformedTrades
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