Fears About Oil in Mideast and Libya Pay Off Nicely for Russia

[Vinee]

Source: The New York Times

MOSCOW — Whatever the eventual outcome of the Arab world’s social upheaval, there is a clear economic winner so far: Vladimir V. Putin.
Russia, which pumps more oil than Saudi Arabia, is reaping a windfall from the steep rise in global energy prices sparked by instability in oil regions of the Middle East and North Africa. Riding the high oil prices, the Russian ruble has risen faster against the dollar this year than any other currency, which is helpful because it will curb consumer inflation during an election year. Russian stocks are buoyant, too: The Micex index closed last week at 1,781, up nearly 6 percent since the beginning of the year.
But the Russians cannot step in to offset any big drop in global production — if that happened — because Russia does not have any oil wells standing idle that would allow it to increase production. Right now Russia is pumping oil at its top capacity.
But at Monday’s closing price of $114, the price of each of those barrels of Ural crude, the country’s main export blend, has risen 24 percent since the beginning of the year.

Read more: http://www.nytimes.com/2011/03/08/business/global/08oil.html?src=busln

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My my my, how the times do change.

[BeFree]

1. This is not news

Does anyone really believe the oil companies (and bushco) did not know that Russia was to become the world's largest supplier of crude?

Now, forget the cold war, but is it possible that Russia and the hardliners in the US are conspiring or fighting each other in Libya?

Or are they just innocent bystanders?