OPEC backs oil trade in dollars

LONDON: Oil producers and executives on Tuesday said the dollar was likely to stay the currency of oil trade and dismissed persistent speculation of a possible switch.

A deep-seated debate over commodity dealings was rekindled by a British newspaper article earlier this month that said China, Japan, Russia and France were in secret talks with Gulf Arab states to stop using the U.S. dollar for oil trading.

Big oil producers denied it at the time, but the dollar’s slide to 14-month lows against a basket of currencies has kept the question of whether it can remain the world’s reserve currency on the agenda and stoked speculation the report of a commodity trading switch could have some foundation.

OPEC Secretary General Abdullah al-Badri said he knew of no plans for a change.

“No, no,” Badri told reporters on the sidelines of an industry conference in London.

The euro, he said, would be the only currency that could be used and even then any transition would be long.

Reuters