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 oil industry operates on the crude market. Crude is vital to nearly all other industries, if not industrialized civilization itself, and...
-
The year 2007 is almost over, all the happenings we had along the year all affected the final consumer price, but the most used by oil compa...
-
Our WorldWatch received news fresh from Joburg that AngloGold, Africa's biggest gold producer, employs about 35,000 people in South Afr...
No comments:
Post a Comment