• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 3 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 5 days Does Toyota Know Something That We Don’t?
  • 4 days World could get rid of Putin and Russia but nobody is bold enough
  • 13 hours America should go after China but it should be done in a wise way.
  • 6 days China is using Chinese Names of Cities on their Border with Russia.
  • 8 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 8 days OPINION: Putin’s Genocidal Myth A scholarly treatise on the thousands of years of Ukrainian history. RCW
  • 8 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 6 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 7 days Putin and Xi Bet on the Global South
  • 8 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
  • 8 days United States LNG Exports Reach Third Place
  • 8 days Biden's $2 trillion Plan for Insfrastructure and Jobs
Oil Prices Remain Rangebound As Volatility Fades

Oil Prices Remain Rangebound As Volatility Fades

Oil price volatility has fallen…

Red Sea Strikes and China's Economic Stimulus Support Oil Prices

Red Sea Strikes and China's Economic Stimulus Support Oil Prices

The Houthi's renewed maritime offensive…

James Stafford

James Stafford

James Stafford is the Editor of Oilprice.com

More Info

Premium Content

This Week in Energy: What Does Russia Really Want?

As Ukraine continues the downward descent into violent crisis this week, Russian President Vladimir Putin continues to baffle the world’s leaders. On 7 May, Putin spoke publicly about Ukraine, leaving everyone guessing at his intentions in urging pro-Russian separatists in Ukraine’s east to postpone referendums they were planning to hold this weekend.

There is a purposeful confusion coming out of Moscow, as Putin openly supported upcoming presidential elections in Ukraine to be held on 25 May, while the Russian foreign minister has harshly criticized the elections. There is no foreign leader today who can go to mental bat with Putin.

On Thursday, Oilprice.com’s special guest contributor, Ukraine oil and gas expert Robert Bensh, gave a televised interview to CNBC, stating: “Throughout the crisis, Russia has sought to mask its intentions and has been engaged in a sophisticated PR campaign, often saying one thing while doing and preparing for another.”

So what does Russia really want? According to Bensh, Moscow wants—and needs—control of the pipeline system. “[…]If you have control of the pipeline system and you are able to bring your product into Europe, you have a compliant Europe, you have a compliant Ukraine. And this is what Putin is going after.”

Elsewhere, we are keeping a close eye on Turkey, and Prime Minister Recep Tayyip Erdogan, who is busy convincing foreign investors that the unexpected victory of his Justice and Development Party (AKP) in March local elections, spells certain stability.

However authoritarian his moves have been—and make no mistake, they are—there may possibly be an element of stability to be found in this. It may not last forever, but for now, Erdogan has cemented his authority. It is unfortunate that he has had to do this by removing personal freedoms.

But we’re also paying attention to the approaching anniversary of the Gezi Park protests, when things really started to go bad for Erdogan. That anniversary is on 31 May, and it will take place against the backdrop of the trials of 255 people involved in the protests last year, during which at least eight people were killed and more than 8,000 injured.

Related Article: Russia Claims Ukraine’s Black Sea Oil And Gas Bounty

The defendants face vague charges of violating demonstration laws, injuring civil servants and damaging property. They could face up to 12 years in prison if convicted. This would be a good time for Erdogan to throw the protesters a fig leaf.

Investors aren’t entirely convinced, but Turkey remains optimistic that they will be. As Bloomberg reports: “The country’s current-account deficit has risen to almost 8 percent of gross domestic product -- bad enough to earn Turkey a place among Morgan Stanley’s Fragile Five, the bank’s moniker for the emerging-markets countries whose economies are most vulnerable to higher world interest rates.”

The agency also notes that “from May 30 through the end of February, foreign investors sold $500 million more in Turkish stocks and $2.8 billion more in Turkish bonds than they purchased, according to data from Turkey’s central bank.”

From an energy perspective, however, investors should be attracted at least by the countries potential to become the key oil and gas hub linking Europe and the Middle East, for which getting their first—when things aren’t in place yet—is key to getting their at all. The only question is whether Erdogan means stability or instability. Western investors need some more assurances and a clear demonstration of legitimate longevity.

ADVERTISEMENT

This week’s Oil & Energy Insider is a must read for energy investors. Find out more about how you can start a 30 day free trial here.

James Stafford
Editor, Oilprice.com


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News