Russia, Oil and bitcoin!

[validium]

I think it's ISIS that are dropping the oil prices, last I heard they were selling for like $20 a barrel.

I dont think ISIS are the ones making the price fall, as the oil fields they control produce a very small percentage of the oil produced globally. Something else has to be making it drop, but on the other side, the price of most commodities might drop.

[ScryptAsic]

What's weird is I saw recent article citing unprecedented demand for corn ethanol, for E10 and that made me WAT??? pretty hard, given apparent low demand for the oil part of that equation.

The demand for corn (when being used for energy) is directly tied to the demand/price of oil, as corn is primarily mixed with oil to make E85 gasoline. I don't think there would be an increased level of demand for corn without an increased demand for gasoline (and oil)

[longshort3301]

for invading Ukraine....
....All this will make Russia completely standstill and finally Putin will have to accept to the western terms and conditions!....

XAXAXAXAXAXAXA!!!!! trololo blya

[Febo]

You forgot to add that fraction those thingies that USA does, can only be profitable at high Oil price. Since Opec will pump same amount of oil, that will move price lower. And Those companies will close and those that give loans to those companies will not get them back and those banks will bankrupt and guess who will pay that again?

[Flashman]

What's weird is I saw recent article citing unprecedented demand for corn ethanol, for E10 and that made me WAT??? pretty hard, given apparent low demand for the oil part of that equation.

The demand for corn (when being used for energy) is directly tied to the demand/price of oil, as corn is primarily mixed with oil to make E85 gasoline. I don't think there would be an increased level of demand for corn without an increased demand for gasoline (and oil)

Yah, seems unlogical http://www.businessweek.com/news/2014-11-25/wheat-climbs-to-one-week-high-as-u-dot-s-dot-freeze-seen-hurting-crops

[Demille]

I think it's ISIS that are dropping the oil prices, last I heard they were selling for like $20 a barrel.

I dont think ISIS are the ones making the price fall, as the oil fields they control produce a very small percentage of the oil produced globally. Something else has to be making it drop, but on the other side, the price of most commodities might drop.

Lol, isis don't have enough oil to effect the price. They're also not going to give it away for peanuts, though oil is very cheap in places like Iraq anyway.

[Flashman]

Well maybe it's a two birds one stone thing, US strongarmed Saudis into it, so they can bring Putin to heel and also starve out ISIS.


Something like "You make sure production doesn't cut, or you don't get nice shiny new F-35s."

[Nerazzura]

In contrast, the International Atomic Energy Agency, IAEA warned ISIS development in Iraq could cause world oil prices rose.
ISIS group in fear will prohibit companies that invest in production in the country. Iraq predicts a contributor half of the growth in oil production.
Only 10% of Iraq's oil production decline this year, because the area controlled by the ISI is not the region's oil resources.

[wagabee london]

if russia adopt bitcoins the Price will be back at 1000 dollars the rubles is losing is value people overthere are saving in us dollars and gold coins.the nuclear energy sector russia with china is developing hybrid nuclear ernergy a cheap energy

[panju1]

Today an important event happened that is OPEC won't cut oil output, which sends crude oil prices plummet to 4yr low to 70$ per barrel.

How this affects bitcoin?

There is a very strong link between oil and the dollar, not so between Bitcoin and oil. Crude oil being denominated in USD is what makes the dollar the reserve currency of the world. In my opinion, any step by an oil producing country to sell a portion of their output denominated in Bitcoin will be a huge boost. There are some oil producing countries with a pathological hatred for the US, like Iran.

[wunkbone]

Well maybe it's a two birds one stone thing, US strongarmed Saudis into it, so they can bring Putin to heel and also starve out ISIS.


Something like "You make sure production doesn't cut, or you don't get nice shiny new F-35s."

This could potentially be true. Or the Saudis could have declined to cut output in order to bring the world farther from the brink of war which would likely result in someone invading/taking over Saudi Arabia so they can get their oil to "gas" it's war machine

[gabbello]

Like other eastern European countries in Russia there is a clear separation in society between "modern" people (guys who travel, uses internet for more than porn and facebook/vk, know a foreign language, etc) and utterly stupid and imbecile peasants (have few savings, go to church each sunday and then striaght to localbar to get some vodka, consider voting for Putin/former communists, never went farther than 300 km from hometown, don't have/watch any foreign tv station, etc).

In Russia the split is around 20/80, hence it is very easy for putin regime to demonize anything they want via their brainwashing (and amusing for westerners) massmedia. 

This being said, the "smart" guys already have their savings (or even salaries) in EUR/USD/gold etc. They are affected in a small part by falling rouble, and anyway they can't mitigate this with bitcoins.

For the rest of  80%, they are highly affected by this, but  they are at a living standard their parents and grandparents never dream of (they have electricity, running water, a WC in house and not back of the yard) so there is still a lot to "cut" until they will actually try to think about this. They are all used with "hard times" and even if they try to think/do something about it they will miserably fail since they don't have the knowledge or capacity to think for themselves when it comes to stuff like "should I keep my savings in a cryptocurrency or not"

[david wilson]

I think it's ISIS that are dropping the oil prices, last I heard they were selling for like $20 a barrel.

I agreed with you. ISIS plays a great role in low prices of oil.

[james martin]

The main cause behind the unfolding oil glut is not declining demand but rising supply.

The dramatic expansion of shale extraction in the U.S. has been such that Saudi Arabia has effectively lost its main client. With global shale deposits apparently exceeding the equivalent of Saudi Arabia’s entire oil deposits, it was only a matter of time until technology would allow the energy industry to tap into this resource.

Now, hardly two decades after American industry began extracting it, shale accounts for nearly half of U.S. gas consumption, as drilling abounds in Texas and Dakota while the U.S. produces one tenth of the world’s oil and looms as a net exporter of oil. Other countries with great shale deposits, most notably China, will soon follow suit.