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Putin Bets on Gazprom Purge as Slowdown Threatens Legacy

Vladimir Putin wasn’t having a great day. The Russian president had spent the August morning in a helicopter over Khabarovsk, near the Chinese border, surveying flood damage that had left tens of thousands of people homeless. Then he met with senior advisers who were on the trip, for a briefing on economic issues. They drew parallels to another brewing storm: The energy-export model Putin had relied on to restore Russia’s economic strength had run its course, he was told, said two officials on the trip. The state-dominated economy needed a shock, and, to prevent stagnation as growth slowed, a reset. Something had to be done. The solution Putin chose will ripple through the entire Russian economy starting next year: He elected to freeze prices at such powerful state companies as OAO Gazprom (GAZP) and OAO Russian Railways. The plan is to set off a chain reaction that will lead […]

Posted On : Published By : Tom Whipple
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No one wants Russia to implode but optimists have their work cut out

No one wants Russia to implode but optimists have their work cut out For the state of Russia’s economy is parlous. A couple of weeks ago, the Russian ministry of economy slashed its forecast for average annual growth between now and 2030 from 4pc to 2.5pc. In fact, Russia’s economy has recently been extremely weak. It fell into technical recession in the first half of the year and it looks likely to post growth of only about 1pc this year, down from an average over the past decade of just under 5pc. Russia’s previously strong growth earned her inclusion in the group of countries known as the BRICs. In fact, this gave a misleading impression of Russia’s underlying dynamism. Russia’s strong past growth reflected a series of one-off factors which cannot be repeated. Most importantly, over the past 10 years, higher oil prices have increased Russia’s export earnings, and […]

Posted On : Published By : ASPO-USA
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U.S. Oil Futures End Lower on Supply Concerns

NEW YORK — U.S. crude oil futures prices fell modestly Friday, while Brent crude oil futures climbed to a six-week high on concerns over continued disruptions to Libyan oil exports. Analysts said an extended cold snap across the Midwest and eastern U.S. provided support to diesel/heating oil futures which climbed for a third day, pushing prices to the highest level since Oct. 10. ICE Brent crude oil for January delivery settled up 97 cents, at $111.05 a barrel, the highest level since Oct. 11, as labor unrest in Libya keeps crude oil output only about one third of typical levels of 1.6 million barrels a day. Brent prices also were supported by indications that ongoing talks between major world powers and Iran won’t soon result in a lifting an embargo that has cut the country’s output by about 1 million barrels a day. After prices settled Friday, U.S. officials […]

Posted On : Published By : Tom Whipple
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Brent Premium to WTI Reaches Widest Point in Eight Months

West Texas Intermediate’s discount to Brent reached an eight-month high as rising inventories weighed on U.S. futures and limited progress in Iran nuclear negotiations supported the European benchmark. The spread widened to $16.21 from $14.64 yesterday. WTI declined as rising domestic output added to inventories at record highs for this time of year. Brent reached a six-week high as envoys haggled over language in their efforts to ease the standoff over the atomic ambitions of Iran, whose oil exports have been reduced by sanctions. “We have increasing crude oil supplies here in the U.S.,” said John Kilduff , a partner at Again Capital LLC, a New York-based hedge fund that focuses on energy. “WTI is under pressure. The market is very skeptical that a deal is going to be achievable. That’s helping Brent disproportionately.” WTI for January delivery slid 60 cents, or 0.6 percent, to $94.84 a barrel on […]

Posted On : Published By : Tom Whipple
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Brent Crude Oil Futures Gain as Libya, Iran Issues Persist

–North Sea Brent crude oil futures prices gained Friday amid continuing worries over reduced Libyan supplies and signs that the embargo on Iran’s oil exports won’t be lifted soon. ICE Brent crude oil for January delivery topped $111 a barrel, a level it hasn’t settled above since mid-October as labor unrest in Libya keeps crude oil output at only about one-third of typical levels of 1.6 million barrels a day. Analysts said Brent prices also were supported by indications that ongoing talks between major world powers and Iran won’t soon result in a lifting an embargo that has cut the country’s output by about one million barrels a day. Iran’s Foreign Minister Mohammad Javad Zarif was quoted citing unspecified progress in the […]

Posted On : Published By : Tom Whipple
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Natural Gas Futures Rally For Third Straight Day on Cold Weather Outlook

Natural gas futures climbed Friday, rising for the third straight session, as forecasts for a widespread cold snap suggested above normal demand for the heating fuel, on the heels of the first storage withdrawal of the winter season. Natural gas for December delivery rose 6.4 cents, or 1.7%, to $3.766 a million British thermal units on the New York Mercantile Exchange, earlier reaching their highest level since Oct. 21. Prices have gained nearly 6% over the past three trading days as weather forecasts have turned increasingly bullish for the fuel used by roughly half of U.S. all households as their primary heating source. “Temperatures are still looking cold and are now expected to stay that way through the first week […]

Posted On : Published By : Tom Whipple
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Critical worldwide shortages could lead to water wars

Get ready for the water wars. Most of the world’s population takes water for granted, just like air — two life-sustaining substances. After all, the human body is nearly two-thirds water. But a Hindustan Times blogger said that in India right now, as in many other places around the globe, drinkable water has become such a “precious commodity” that it’s dragging the world into “water wars.” Climate change is drying up lakes and rivers almost everywhere. In Australia, an unprecedented heat wave brought on massive wildfires and critical water shortages. As water grows scarce, more countries are building dams on rivers to hog most of the water for themselves, depriving the nations downstream. Already, Egypt has threatened to bomb the Grand Renaissance Dam upstream on the Nile River in Ethiopia. And as the Earth’s population crossed the 7 billion mark last year, more […]

Posted On : Published By : Tom Whipple
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Compromise Seen on Tehran's Right to Enrich; Kerry, Other Foreign Ministers Fly to Geneva Talks to Try to Conclude Pact

GENEVA—Iran and world powers neared a crucial compromise Friday on a late roadblock to a deal to curb Tehran’s nuclear program, according to Western and Iranian diplomats taking part in the negotiations. A compromise on that issue—Iran’s demand that it be explicitly allowed to keep some domestic uranium enrichment capacity—could lend momentum to the push for an agreement and at least a temporary reprieve from a decadelong standoff over Tehran’s program and elevated fears of war over it, according to these officials. French Foreign Minister Laurent Fabius arrived in Geneva Saturday morning to join the Iranian nuclear talks, saying he wanted to see a “solid” deal reached. Mr. Fabius played a key role in the last round of Iranian negotiations two weeks ago, saying publicly the draft agreement under discussion was not tough enough on several key points. Iranian officials have since blamed France for scuppering a deal. Speaking […]

Posted On : Published By : Tom Whipple
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Compromise Seen on Tehran’s Right to Enrich; Kerry, Other Foreign Ministers Fly to Geneva Talks to Try to Conclude Pact

GENEVA—Iran and world powers neared a crucial compromise Friday on a late roadblock to a deal to curb Tehran’s nuclear program, according to Western and Iranian diplomats taking part in the negotiations. A compromise on that issue—Iran’s demand that it be explicitly allowed to keep some domestic uranium enrichment capacity—could lend momentum to the push for an agreement and at least a temporary reprieve from a decadelong standoff over Tehran’s program and elevated fears of war over it, according to these officials. French Foreign Minister Laurent Fabius arrived in Geneva Saturday morning to join the Iranian nuclear talks, saying he wanted to see a “solid” deal reached. Mr. Fabius played a key role in the last round of Iranian negotiations two weeks ago, saying publicly the draft agreement under discussion was not tough enough on several key points. Iranian officials have since blamed France for scuppering a deal. Speaking […]

Posted On : Published By : Tom Whipple
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Foreign ministers in Geneva for talks on Iran nuclear deal

World powers and Iran held a fresh round of talks on the Islamic republic’s nuclear programme, a month after launching ice-breaking negotiations that may yield a historic deal on easing sanctions against Tehran in exchange for concessions ©Getty EU foreign policy chief Lady Ashton and Iranian foreign minister Mohammad Javad Zarif arrive for talks in Geneva on Wednesday John Kerry, US secretary of state, has held talks with Lady Ashton, the EU foreign policy chief and the French foreign minister Laurent Fabius after flying to Geneva for the second time in two weeks for what is hoped will be a last diplomatic push to reach an interim agreement on curbing Iran’s nuclear programme in exchange for an easing of international sanctions. A State Department […]

Posted On : Published By : Tom Whipple