OPEC´s Silva: OPEC evaluating trading in Euros

OPEC´s Silva: OPEC evaluating trading in Euros


By Elio Ohep of Petroleumworld
CARACAS 12 10 03
Petroleumworld.com


OPEC´s Secretary General Alvaro Silva said Monday to Venezuelan news agency Venpress that OPEC is evaluating trading oil in euros or a basket of currencies other than the dollar to compensate for the recent decline of the US currency.

Silva, who is to hand over his OPEC post on Jan. 1. said that traiding in euros is just an alternative.

"There is talk of trading crude in euros - it is one of the alternatives," Silva told the Venpres.

This week there is talk on the markets that, the opinion of some OPEC ministers expressed last week concerning the decline in the value of the dollar that eroding their purchasing power, might prompt the OPECat the next meeting to reduce futher production, despite the price this week that has been in the upperside of the price band mechanism.

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http://www.petroleumworld.com/storyT1127.htm

A good reason why the dollar is falling . Don't forget , I raq changed to Euro as it's Oil currency of choice in 12/2000.

Go find his posts in the economics room. It will curel your hair.

...Once UN resolution #1483 was passed on May 22, 2003, that ended the UN controlled "oil for food" program, and created the benevolent sounding "Iraqi Assistance Fund." Of course the US and UK controls this fund, not those pesky UN folks. This allowed the US to revert Iraq's oil export currency back to the US dollar, even though the dollar was worth less than the euro.

A June 5, 2003 article in the Financial Times confirmed my original hypothesis - the US was very eager to redenominate Iraqi's oil transaction currency back to the dollar. This detail was never mentioned in the US media, but provides insight into one of the crucial - yet overlooked - U.S. rationales for the Iraq war. Here's that crucial paragragh buried in the article about Iraq's oil returning to the International markets...

“The tender, for which bids are due by June 10, switches the transaction back to dollars - the international currency of oil sales - despite the greenback's recent fall in value. Saddam Hussein in 2000 insisted Iraq's oil be sold for euros, a political move, but one that improved Iraq’s recent earnings thanks to the rise in the value of the euro against the dollar."

BTW, during that same month of June 2003, Paul Bremmer canceled plans for local elections in Iraq. Can you say massive neocon "hyprocrisy", "deception" and "militant Empire"...I knew you could! Remember, throughout history the vast majority of wars have been and always will be about resources and/or economics (even "religious wars" usually have an underlying motive re these two factors). The 2003 Iraq was was no different, it had nothing to do with WMD and the so-called "war on terrorism."

BTW, here's my next prediction: Russia will redenominate their oil sales to the "petroeuro" in 2004...

For those who are interested in such subjects, my forthcoming book will be released in the fall of 2004 - 'Petrodollar Warfare'

to get the facts out - this is a very overlooked and under-reported issue - one that will affect every man, woman and child on this planet

- but now back to Michael Jackson

and ignored by the US media on any level.

swimmingly brilliant economy?? How would this play out - does anyone know?

Look at the price of gold over the last year or so. Same thing will happen with Eurodollar oil, imho.

There were rumors they'd do so starting last winter, but and the US was busy readying for war in Iraq - no one in the Arab world wanted to piss off the US, and then in the summer Snow came out saying 'strong dollar' - so they held on.

If they actually do move to the Euro, I'd expect the dollar to strengthen, and prices to fall further. That's why they're talking 'basket of currencies' - the west is good at screwing raw material producing countries with floating standards.

As a result, I'd expect them to move to some sort of weighted Dollar/Euro number between the currencies to protect themselves from massive valuation movements like this (sticking with the dollar accomplished this for a long time, but not since GW*)

If they do it - expect the price to rise. The target will be higher than it is now (the weak dollar is making energy prices very comfy for the europeans and the rest of the industrializing world right now, further helping those overseas manufacturing entities). It'd hurt the spluttering recovery if the movement were extreme, but it would probably stop the movement by Bushco to devalue the dollar. We'd probably have higher interest rates and a little inflation as a result. It's never really a one variable issue - but generally, higher energy prices hurt the economy.

I'd also expect Iraq to 'leave opec' if they do...

back in September...supposedly there was an OPEC meeting on Sept 24 . the members voted to no longer accept the $ starting 1/1/04. Only EURO's or Gold will be accepted for oil. This probably means economic crash or war? depending on the intentions of our resident faker.

Uncle Sam, and may well bring him to his knees.

And yet BushCo goes on spending money like drunken sailors, and making enemies around the globe by acting arrogantly.

Someday a talented dramatist will make an epic play of this folly.

,...can be brought to the knees,...and it seems to me of late that the world is doing a serious economic crunch maneuver on this giant,...or, maybe it's just me hallucinating that an economic war is really happening to put a leash on PNAC imperial pursuits,...

It isn't mentioned much but Saddam had already begun plans to switch to the Euro. That was a real weapon of mass destruction.