Iran to OPEC: Stop Oil Sales In Dollars

[Paulie]

http://ap.google.com/article/ALeqM5hut5APs3h9sbxwxCxa0VrneoG8pgD8VSICH81

TEHRAN, Iran (AP) — Iranian President Mahmoud Ahmadinejad is urging OPEC members to form a joint bank and stop pricing oil trades in U.S. dollars.

According to the Iranian government's Web site, Ahmadinejad told OPEC Secretary General Abdalla Salem el-Badri the cartel "should establish a joint bank as well as having joint currency."

Oil is priced in U.S. dollars on the world market, and the currency's depreciation has concerned producers because it has contributed to rising crude prices and eroded the value of their dollar reserves.

Iran has repeatedly urged OPEC members to shift sales away from dollar. But Iran's proposal to trade oil in a basket of currencies is not supported by enough OPEC members, which include staunch U.S. allies such as leading producer Saudi Arabia.

 

[Toro]

Not going to happen.

Iran effectively stopped accepting dollars for oil several months ago.

 

[Paulie]

Saudi Arabia knows better. They wouldn't dare break their agreement they made with the US to trade oil in Dollars in exchange for military protection.

Just figured I'd post this though, so that some of the members here can see what OTHER things Iran is doing that have been pissing off the administration these days.

It's not just about nuclear weapons programs and threats to annihiliate other countries.

 

[Shogun]

hey.. If I were iran and dealing with the shit from the west in this post-invasion world you are damn right i'd make the same suggestion. Why the hell should they keep the dollar as a monetary standard given the treatment they've been given the last 8 years?

 

[Paulie]

hey.. If I were iran and dealing with the shit from the west in this post-invasion world you are damn right i'd make the same suggestion. Why the hell should they keep the dollar as a monetary standard given the treatment they've been given the last 8 years?

Not just that, but why should any of the OPEC nations be forced to sell their #1 export in a currency that is losing its ass?

Those nations practically have NOTHING without their oil to export. If I was any of them, I'd want to get the most value for my exportation.

But they all have a gun barrell stuck down their throats to keep them from bucking the system. The Saudis, Kuwaitis, UAE, Qatar, Jordan, etc made nice with us instead, and now they get our military protection in exchange. Iran and Venezuela chose not to go that route, and they'll eventually pay the price in bombs.

If you notice, oil seems to be pegged to the price of gold. They both seem to be trending the same. OPEC adjusts their output to keep their oil priced high enough to compete with the inflation that WE'RE exporting to all of THEM.

 

[ReillyT]

Not just that, but why should any of the OPEC nations be forced to sell their #1 export in a currency that is losing its ass?

Those nations practically have NOTHING without their oil to export. If I was any of them, I'd want to get the most value for my exportation.

But they all have a gun barrell stuck down their throats to keep them from bucking the system. The Saudis, Kuwaitis, UAE, Qatar, Jordan, etc made nice with us instead, and now they get our military protection in exchange. Iran and Venezuela chose not to go that route, and they'll eventually pay the price in bombs.

If you notice, oil seems to be pegged to the price of gold. They both seem to be trending the same. OPEC adjusts their output to keep their oil priced high enough to compete with the inflation that WE'RE exporting to all of THEM.

The Euro zone is tearing itself apart over to lower interest rates (Spain) or raise interest rates (Germany). The possibility exists that they may call the whole thing off in the next few years, in which case the dollar is the only game in town.

 

[Paulie]

The Euro zone is tearing itself apart over to lower interest rates (Spain) or raise interest rates (Germany). The possibility exists that they may call the whole thing off in the next few years, in which case the dollar is the only game in town.

Don't count out the Renminbi. China will soon have all the capabilities of militarily protecting their currency as we do. Something that can not be said for any nation in the EU.

I don't trade forex, but if I did, I'd be owning more Renminbi than Dollars.

 

[Toro]

The supremacy of the dollar will not be challenged for some time.

All fiat currencies are being debased right now.

 

[Paulie]

I don't see why it's so out of the world to think that countries may at least start selling in a basket. Why not diversify yourself when the dollar is doing so poor right now, and you can obviously see that the US isn't going to be doing anything anytime soon to stop inflation.