Can someone explain to me what this quote really means? I still don't quite understand how the oil business works - I don't get how falling oil prices would effect Russia's economy - seems like it would be the opposite?? Also, some have argued that the war w/ Iraq is NOT about oil - does this support this or argue against it or have no relevance? Any comments greatly appreciated...
(i'm signing up for an Economics class next semester) :-)
http://story.news.yahoo.com/news?tmpl=story2&u=/ap/20021122/ap_on_re_eu/bush_putin&e=4
With war on the horizon once again, Russia wants assurances that military action in Iraq won't jeopardize its economic interests with Baghdad or drop oil prices so low that it hurts Moscow's already ailing economy.
Though there was little talk about the issue Friday, Bush has assured Putin he will do what it can on both counts, administration officials said. They said Moscow may be overestimating America's influence in a postwar Iraq.
Putin fears that lifting the U.N. trade sanctions on Iraq after a war could trigger an influx of Western oil interests that would collapse oil prices. The administration officials, who spoke on condition of anonymity, said Russia has been told the United States cannot control oil markets, but Bush has long supported efforts to keep oil prices stable.