$this->bbcode_second_pass_quote('DantesPeak', '')$this->bbcode_second_pass_quote('Petrodollar', '')$this->bbcode_second_pass_quote('', 'H')mmm. I wonder if we will ultimately see a "basket of currencies" for global oil pricing and transactions in the: dollar, euro, yen/yuan and...ruble?
PeakOil is You
Russian secondary peak approaches?
Re: A Russian oil bourse?
by BrazilianPO » Thu 11 May 2006, 08:19:43
Good point – the US dollar regime will be replaced by some basket combination of currencies and/or commodities.
If you remember the early 70s, trade and budgetary problems were compounded by the fact that OPEC, followed by France and other countries, refused to be a part of the formal Bretton Woods US dollar regime established in 1944. After a few years of turbulence, and much higher prices for oil and gold, an informal Bretton Woods II dollar regime was worked into place by behind the scenes 'enforcers'. That has served us well until now.
The moves by Iraq, Iran, and Venezuela to drop out of the system were met by direct or covert military action by the US. But now Russia is essentially dropping out of the BWII - probably to be followed soon afterward by China.
The dollar will be then be in a state of collapse. The extra $1 trillion the US raked in from the rest of the world per year will be gone, and we'll have to get by on less. While the loss of $1 trillion a year by itself won't destroy us, the fact that we can not to adjust to such a sudden change will cause a depression.
This new development is very disturbing, and can be viewed as a sign of the times to come.
As the oil exporting countries realize their power ("the price goes up and my clients are still buying like if there was no tomorrow"), they will dictate the rules, until the economies start crumbling. Probably we will see every country trying to sell their oil in their own currency to reinforce it. I do not see a real problem, except for the dollar, if that happens, but it will be strange to have oil quoted in ten different currencies when we go to Bloomberg
. Actually, as a Brazilian, I would like to see Brazil selling its excess oil in Brazilian Reais.-
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Re: A Russian oil bourse?
by DantesPeak » Thu 11 May 2006, 08:51:25
Looks like Russia wants to be an "energy superpower". It is not expected that conversion to rubles for trading purposes can start before mid-July, with the Russian oil bourse to follow in 2007:
$this->bbcode_second_pass_quote('', '5')/11/06 What the Papers Say 00:00:00
What The Papers Say (Russia)
Copyright 2006 WPS Media Monitoring Agency
May 11, 2006
Issue 80
Section: PRESS EXTRACTS
A DEFENSE ADDRESS
Putin prepares the nation for a new arms race
Speaking of Russia's role in the global economy, Putin proposed an emphasis on development of a modern energy sector, communications, space exploration, aviation, and export of intellectual resources. He called Russian companies in the production sphere quite competitive and demanded "technological renovation of the energy production sector," better energy efficiency, and developing nuclear power sector. According to Badovsky, all these theses fit the energy superpower concept and the agenda of the forthcoming G8 summit, where the topic of energy security will be a focus of attention.
Putin once again reminded the government of the necessity to establish oil and gas stock exchanges operating with the ruble. Alexander Gladkov of the Economic Development Ministry maintains that oil auctions may be organized as soon as 2007, but stock exchanges will have to wait. As for gas, the appropriate ministries and departments are now working on the draft resolution concerning a gas stock exchange. In fact, they have been working on it since 2002. Gazprom and other producers are expected to offer 5 billion cubic meters of gas each for sale. Gladkov ascribes the delay to the fact that stock exchange sale is a market instrument which doesn't exactly fit the practice of sales to domestic consumers by Gazprom.
$this->bbcode_second_pass_quote('', '5')/11/06 What the Papers Say 00:00:00
What The Papers Say (Russia)
Copyright 2006 WPS Media Monitoring Agency
May 11, 2006
Issue 80
Section: PRESS EXTRACTS
A DEFENSE ADDRESS
Putin prepares the nation for a new arms race
Speaking of Russia's role in the global economy, Putin proposed an emphasis on development of a modern energy sector, communications, space exploration, aviation, and export of intellectual resources. He called Russian companies in the production sphere quite competitive and demanded "technological renovation of the energy production sector," better energy efficiency, and developing nuclear power sector. According to Badovsky, all these theses fit the energy superpower concept and the agenda of the forthcoming G8 summit, where the topic of energy security will be a focus of attention.
Putin once again reminded the government of the necessity to establish oil and gas stock exchanges operating with the ruble. Alexander Gladkov of the Economic Development Ministry maintains that oil auctions may be organized as soon as 2007, but stock exchanges will have to wait. As for gas, the appropriate ministries and departments are now working on the draft resolution concerning a gas stock exchange. In fact, they have been working on it since 2002. Gazprom and other producers are expected to offer 5 billion cubic meters of gas each for sale. Gladkov ascribes the delay to the fact that stock exchange sale is a market instrument which doesn't exactly fit the practice of sales to domestic consumers by Gazprom.
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DantesPeak - Expert
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