So he did it! Russian president becomes a persona grata for financial news! Two reasons evoke attention to the leader: the bombardment of Syria and the confirmation to attend a meeting of oil exporters.
The first reason
According to the agreement Russians have got started the bombardment of Syria targeting the ISIS positions. However, they created chaos attacking rebels territory. The reason for bombing rebels close to the road from Damascus to Homs last Friday is to provide safe and secure communication between the two areas, which have still remained under control of the government. The ISIS demolished Palmira proclaiming the end of the western world and all infidels. Unfortunately, the jet fighters did not protect the ancient city. As for proclaiming the end of the western civilization, Russia just does not care, because the position between East and West kept it apart from the West and under the illusion of the inaccessibility from the East. On Wednesday the Syrian army attacks on Islamic fractions in Hama and Idlib with the support of air strikes by Russian fighter jets. Putin targeted to reestablish and encourage Bashar al-Assad power over the country, no matter of the rebel’s intention. The leader behaves himself as Iranian ally. Why? Just to demonstrate the independent position and opposition to the USA plus Europe, to manifest the uniqueness and unpredictability, to flex the muscles. The danger of the Russian presence in the Middle East is terrifying. Who and how will answer the defiance?
The second reason
Russians overcame the USSR level of the oil and condensate production this September in a rush for the money. The daily output for the last month has reached 10.74 million barrels. Bowels of the earth have been wrung despite of the global glut. Nevertheless, the business is aware of necessity to cooperate with partners. Thus Russia agreed to participate in a meeting of oil producers. At the end of the month Saudis and Russians will meet to discuss the situation with oil prices and their impact on the global economy. The reaction of the markets appeared immediately. Since Monday oil is going up, winning $50 per barrel. At 3 pm WTI has been changing hands at $49.44. The USD is weakening because of some bad news regarding trading balance in the United States and modest increase of new jobs in September. The weakness of the Dollar results in the rise of commodity prices, including oil. So the crude oil is going up thanks to Russian willingness to cooperate with OPEC and the USD dropping down. By the way, ruble is conquering the level of 62 rubles for a Dollar. Usually miracles appear in fairy tales, so in case with oil prices the Energy Information Administration has terminated the positive trend. According to the report of the EIA, in the beginning of the month the crude oil inventories rose by 3.1 million barrels. At the end of the session WTI stopped at $47.83 per barrel.
Anyway, the leader of Russia impresses citizens of the country by military and financial power. His message sounds like “We are back on the top of the world!” However, to live in this potential world is not an easy way. Even to survive.
Here in Israel the scenario of the myth “Russians are back on the top of the world with al-Assad and Iranians!” seems very dangerous and unwise.