Kazakh expert talks on reasons for oil prices drop

Falling oil prices is a big game. Ultimately, the global financial market, specifically the US dollar, are attacked, Kazakh politician and economist Petr Svoik told Report, commenting on the sudden drop in oil prices.

At the same time, the economist does not share the opinion of several experts who consider confrontation in the oil markets of Saudi Arabia and Russia as the reason for the decline in oil prices.

“I would like to remind that the global economic crisis of 2008 began with a financial crisis in the US markets, and then other consequences followed, in particular, a decline in oil prices,” he said. “Now everything is exactly the opposite. It all started with coronavirus, which slowed down the global economy, and ultimately the possibility of servicing the US dollar pyramid. Now Russia begins a long-term game of lowering oil prices to first push the US shale oil out of the markets, and then there is also a gas market ahead. This game will end no earlier than shale production in the US stops, and companies in this industry go bankrupt.”

Svoik also suggested that the oil price will remain within $30-$40, and possibly reach $45 per barrel.

“In any case, this will take place within the range that pushes out US shale oil,” he added. “This price will be maintained long-term, and Russia will be able to stay afloat at such a price. But this is not a war for the oil market; this is a war for the financial market.”

The economist also emphasized that the “war for the financial” restructuring of the world is taking place not between states, but between elites within individual countries.

“Washington, Brussels, London, and Moscow can be called one of the centers of these wars,” he said. “According to the preliminary scenario, the global financial dollar pyramid should first collapse. After that, the winners will establish new rules for the game. In this new world, divided into economic blocks, leadership will be given to those who offer new systems of currency settlements most effective and acceptable for all - of course, digital ones, blockchain technology, without usury and banks.”

Svoik, however, advises not to put aside the factor of traditional economies.

“However, the countries with natural resources will absolutely dominate in the post-dollar world, and this will be an unambiguous advantage overall,” he said. “The US, with its natural resources, will cease to be an exporter to Europe, and Russia will reliably supply Europe with gas and oil.”