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Financial Analytics: Science and Experience
 

Strategic financial transactions in the world markets as a tool for manipulating oil prices

Vol. 8, Iss. 11, MARCH 2015

PDF  Article PDF Version

Available online: 15 March 2015

Subject Heading: Economic policy

JEL Classification: 

Pages: 11-20

Loginov E.L. Market Economy Institute, RAS, Moscow, Russian Federation
evgenloginov@gmail.com

Loginova V.E. Market Economy Institute, RAS, Moscow, Russian Federation
instityteb@mail.ru

Importance The article considers the most important macroeconomic trend, which determines the imperatives of future global economy and the Russian economy for the period of 2015-2016, i.e. a manipulative (positioned within the framework of politically determined period) decline in global oil prices.
     Objectives The paper aims to analyze the aggregate factors underlying the oil prices collapse in 2014. We research the mechanism of massive withdrawal of funds from oil futures by the US banks, which resulted in oil prices collapse. All these developments lead to the expansion of instability contour in the Russian economy.
     Methods The article formulates a model of today's oil prices collapse. The paper highlights objective trends of macroeconomic development and business cycles of the global economy, taking into account the overall global crisis phenomena. We characterize macro- and meso economic measures, which are implemented by the leadership of a number of the countries, primarily, the United States and Great Britain. These measures aim to support their own national economies. The paper presents, in a structured fashion, the measures on using both leverages of the State governance, and corporate collusion of several major American and British banking groups and financial corporations to assist their countries' authorities in pursuing macroeconomic policy, as well as to make big money for themselves. The article defines the measures of the US and the UK economic and political clans, which act both in the geo-economic and political interests and for commercial purposes.
     Results The paper substantiates the responsive and required directions of international combination of factors to enhance the efficiency of "monetization" processes of added value from oil, gas and other energy exports of the Russian Federation, concentration of investment and control expansion of total array of energy and infrastructure assets.
     Conclusions and Relevance The mechanisms of manipulative global oil prices reduction and the necessary Russian measures may be used both within the framework of improving strategies of legislative and executive power activities in the Russian Federation, and within the framework of economic alliances with the Russian Federation participation.

Keywords: financial transaction, oil, global economy, crisis, derivative, futures, prices

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