Tracking West Texas Intermediate crude (WTI) price is an essential element of understanding the global economy. As the world watches in mute horror at the interaction between the Russian Federation and the West, the price of oil is even more important in understanding the behavior of an economy based mainly on fossil fuels.
Also, consider that in 2014, the United States placed sanctions on fracking equipment to Russia, hobbling that country’s ability to develop oil and gas reserves in retaliation for the invasion of Ukraine.
WTI crude remains around USD$50 per barrel, which is below the price required for many non-OPEC nations to make a profit on petroleum sales. As the United States activity in fracking has decreased, Competitive Futures wonders if, looking forward, we’re in a post-fracking price plateau.
This might be good news for consumers and manufacturers – but much less positive for Russia. Then again, geopolitically, that might be one of Russia’s smaller problems in short order.