Friday, August 01, 2008
The Oil Price
An interesting sidenote. In going through some old files, I came across some notes from a 2003 U.S.-Russia dialogue. In it, a Russian economist was discussing how, when oil hit $30 (thirty!) /barrel, Russia would start accummulating a capital surplus. I realize that in the last several years, Russia has begun spending a lot more of its oil boom revenue--but it is still interesting to note that even if oil "falls" from where it is now, in the $140 band--to $70--it is not like we are cutting off the gravy train--we'll just have lowered their superprofits.