« Venezuelan President Hugo Chávez has promised the USA oil on 200 doll./barr. - Reduction of prices for copper - is the temporary phenomenon »
OPEC is not going to refuse dollar
20 November 2007At coming to the end on November, 18th, 2007, III OPEC’s summit Iran and Venezuela - basic critics of the US policy - have offered to pass to currencies basket for establishment of the prices for oil.
Falling of the American currency up to record-breaking low marks in the world markets has already led to sharp decrease in profits of the states oil-exporters (prices for which are established in dollars). It is the basic fact, by which Iran and Venezuela explain the desire to refuse dollar and to pass to the currencies basket.
However, experts mark, that such succession of events is improbable - anyway, in the near future. Moreover, Iran’s and Venezuela’s offer has been put forward on political, rather than to economic reasons.
Societe Generale oil analysts mark that this is a very serious intention. And it will not be apprehended seriously by other OPEC members. It doesn’t look like OPEC states will hasten “to untie” oil from the American currency. Such course (from USA’s opponents) is more likely caused by political reasons, rather than desire to increase the profit. Now price for oil are established in dollars both at currency and future markets, and, in opinion of traders, it is improbable, that the situation will change in the nearest future.
Even Kuwait, which has untied the national currency - dinar from the weakening dollar in May and has passed to the basic currencies basket, all the same continues to sell the oil for the US currency. Iran has also transferred the most part of money, which it receives for the oil, in other currencies, but it all the same while continues to use dollar for an establishment of the oil prices. When business reaches cash payments, Iran all the same prefers other currency, but the price for oil is still defined by dollar.
It is also necessary to note, that though falling of dollar has led to reduction of purchasing capacity of the OPEC countries, it has also promoted a record rise in prices for oil. So, on November, 7th, 2007, the barrel of oil cost 98,62 dollars. Many analysts mark that exactly for this reason “untie” the prices for oil from national currency of the USA is not economically proved.
- Russia and ОPEC are introducing euro payments (Oil exporters reduce dollar accumulations)
- Total wants new ОPEC
- Europe has brought down dollar: the epoch of US currency has come to the end
- OPEC is under the pressure
Leave a reply
You must be logged in to post a comment.
