The Iranian Oil Bourse establishing Euro-based pricing of oil is set to open on February 19th 2008 and could have devastating effects on the US dollar.
Currently all three major oil markets (WTI, NYMEX, IPE) trade barrels of oil in US dollars. Consequently any country buying oil needs dollars to pay for it. This enables the US Federal Reserve to issue huge volumes of dollars to meet increasing demand for oil. In return oil producing nations invest dollar proceeds in US treasury bills, allowing for the current US budget deficit.
But this balance may become unsettled after a fourth major oil market opens this month, trading in Euros: the Iranian Oil Bourse (IOB).
Having the world's second largest oil reserves of 136 gigabarrels, Iran will likely extend its influence on financial markets when the IOB opens. Although under-reported by the media, this historical shift and its consequences should be watched closely.
SOUTH AFRICA SPRINGBOKS
South Africa laid the groundwork with traditional Springbok rugby and finished an out-gunned England side off with two late tries to win ...
-
The crude Saga continues with the price reaching the $117,60 a barrel...due to OPEP speculation and greed ... All OPEC members have shown th... -
Please note these details may be subject to change THE NEWEST NATION IN EUROPE… PORTAXLAND This European Nation has so many t... -
WorldWatch Portugal office has informed than the cartel in the petrol price fixing practiced in one of Europe’s oldest economies continues!...
No comments:
Post a Comment