AS decline in oil prices which began a month ago is a signal of the cyclic shift in global economy. The ten-year super cycle of "expensive oil" is ending. This has earlier happened several times: as soon as the cost of crude oil reached 6% of global GDP, the economic growth slowed and demand for energy fell. Russian experts have recommended to accept the idea that oil prices would fall.
The experts believe that it comes a difficult time for Russia: the second wave of the economic crisis gains strength, and turbulent political events mean changing political eras. At a forum in St. Petersburg, illegal Russian president Putin could not conceal his anxiety.
Oil industry and other energy traders suck the blood from world economy, their super profits turn into losses for hundreds of millions of households around the world. But the time of high oil prices is ending: the commodity bubble will burst soon, like earlier the bubble of dot coms, according to Morgan Stanley. The prices will fall, and the growth will accelerate again.
Department of Monitoring
Kavkaz Center
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