On his Financial Times blog, former BP executive Nick Butler writes that prices are falling despite contrary pressures, including unusual geopolitical upheaval (Ukraine, Iraq, Syria, and Libya) and oil sanctions on Iran and Russia. The reason appears to be falling demand in China. Russian president Vladimir Putin, needs an oil price of roughly $110 to $117 a barrel to cover state expenses. With some fiscal finagling, he can weather bad days like these, as long as they don’t last for long.

 

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