Russia May Cut Off Oil Flow to the West

August 29th, 2008

It might be a swindle to gap the oil price up temporarily on the news for a long oil play. Assuming it happens, of course.

Via: Telegraph:

Fears are mounting that Russia may restrict oil deliveries to Western Europe over coming days, in response to the threat of EU sanctions and Nato naval actions in the Black Sea.

Any such move would be a dramatic escalation of the Georgia crisis and play havoc with the oil markets.

Reports have begun to circulate in Moscow that Russian oil companies are under orders from the Kremlin to prepare for a supply cut to Germany and Poland through the Druzhba (Friendship) pipeline. It is believed that executives from lead-producer LUKoil have been put on weekend alert.

“They have been told to be ready to cut off supplies as soon as Monday,” claimed a high-level business source, speaking to The Daily Telegraph. Any move would be timed to coincide with an emergency EU summit in Brussels, where possible sanctions against Russia are on the agenda.

Posted in Economy, Energy, War | Top Of Page

One Response to “Russia May Cut Off Oil Flow to the West”

  1. Peregrino says:
    August 29, 2008 at 10:35 pm

    Anybody who does anything to start trouble in today’s world has got to know that it can only end in ruin for all. Freudian analysis has been eclipsed, but it is about to re-emerge in all its glory to explain the libidinous freak-out the infantile power-seekers and their robotic followers appear to be getting ready to play out on the world stage. Who can blame them? They can see as well as anyone else that scarcity is replacing surplus everywhere, leaving them less and less wealth to grab and fight over, rendering their lives essentially meaningless. Didn’t someone once say that the meek shall inherit the earth? Looks like that prediction is about to come true.

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