Russia seen playing role in tight oil market, higher prices

The timing of Russia’s failure to expand oil production couldn’t be worse, and experts differ on why it no longer can be counted upon as a swing producer.

Some say President Vladimir Putin is deliberately keeping production flat to keep prices high and expand Russian influence. Others think its more the result of inefficient state-run oil operations. Either way, Russia’s failure to boost production as anticipated is contributing to today’s sky-high fuel prices.

Andrei Illarionov, until Dec. 27 a top economic adviser to Putin, thinks his former boss is deliberately refraining from pumping more oil.

Mercury News