It is said that the reason the USSR fell in the dramatic way it did was first, because it couldn’t price anything in the economy effectively, but secondly because the price of oil (a real price generated on the market) dropped in the 1980s sharply thereby significantly reducing the value of the Evil Empire’s petroleum reserves and a key source of revenue. Some believe that this downward push in oil prices was encouraged by the United States and facilitated by increased production from the Saudis.
Could something similar be happening now? What better way to pressure Putin?
The recent drop in oil prices could be due to more than just lower demand, according to some analysts, who have suggested that the U.S. could be deliberately manipulating the market to hurt Russia at a time of geopolitical stress.
Patrick Legland, the global head of research at Societe Generale, conceded that he had no in depth knowledge of the situation but claimed that it was an “interesting coincidence” that the two events were happening at the same time.
“Is it lower demand or is it the U.S. clearly maneuvering?,” he told CNBC Monday.