"The High Price of Cheap Oil"

The price of oil has cratered, and the cost to fill-up on gas has tanked as well. That's a good thing--right? Wrong--according to Bloomberg News, who's headline on Monday read:

      "Oil Shock Streaks Across Globe From Moscow to Tehran to Caracas.Ready for $40?"

Students of bible prophecy will recognize the significance right away. Moscow and Tehran are prophesied to form a military alliance and attack Israel. (see Ezekiel 38).

While Tehran makes no secret of its desire to annihilate the Jewish State, up until recently no one understood what would motivate Moscow to attack. Then in 2009, Israel discovered oil and is now in the process of becoming an energy superpower.

"Oil and gas provide 68% of Russia's exports and 50% of its federal budget. Russia has already lost almost $90 billion of its currency reserves this year, equal to 4.5 % of its economy, as it tried to prevent the ruble from tumbling after Western countries imposed sanctions to punish Russian meddling in Ukraine," reports Bloomberg News. "The ruble is down 35%* against the dollar since June. (* the ruble dropped another 5% on Wednesday).

Financial analyst, Allan von Mehren adds, "A big decline in the oil price in 1997-98 was one factor causing pressure that eventually led to Russian default in August, 1998."

Russia, according to the International Monetary Fund (IMF), needs $101 a barrel oil to break even, and has based its 2015 budget on the assumption oil prices would continue to top $100. Tuesday a barrel of oil dipped below $70.

Moscow blames the West. "Russia's partners should remember risks involved in disputes between nuclear powers. We hope that our partners will realize the futility of attempts to blackmail Russia and remember the consequences discord between major nuclear powers could bring for strategic stability," Russian President Vladimir Putin said in a not-so-subtle threat.

A crash in oil prices will create economic and political instability across the globe:

• Venezuela, in panic mode, has called for an emergency OPEC strategy to halt the falling prices
• Iran's weakened economy has also been hard hit, and could collapse if prices don't recover soon
• And if you think the US is immune, think again. A prolonged decline in oil prices could cripple our economy too

All things considered, the high price of cheap oil is something none of us can afford.

A wise man once said: " A century ago, petroleum--what we call 'oil'--was just an obscure commodity; today it is almost as vital to human existence as water." -- James Buchan, British novelist

" I will turn you and drive you toward the mountains of Israel, bringing you from the distant north. I will knock your weapons from your hands and leave you helpless...That day of judgment will come, says the Sovereign Lord. Everything will happen just as I have declared it." --Ez. 39: 2, 3 & 8

News:

• Fiscal Times: Russian Leader Accuses Central Bank of Economic Sabotage Due to Its Gloomy Appraisal of Russian Economy
• Behold Israel News: Massive oil spill in Israel's Negev Desert "Worst Environmental Accident in Israel's History" 
• Jerusalem Post: UN General Assembly passes Arab-backed resolution pressing Israel to renounce possession of nuclear weapons and facilities