Prospects of the dollar as oil currency

Moscow, (Igor Tomberg for RIA Novosti) –
Oil prices and payments are vital for our country, a leader in the oil trade on a par with the Saudis. The main headache is Russia’s inability to influence world prices of its oil. The bulk of proceeds from trade in oil go to those who sell it to the end users rather than to producers such as Russian, Iraqi, or Iranian companies. It is the International Petroleum Exchange in London (IPE) and the New York Mercantile Exchange (NYMEX) which decide how much exported Russian Urals oil will cost. Moreover, their quotes are so far removed from the real cost of oil, and are influenced by so many speculations and other factors, that it is simply ridiculous to view them as a real indicator of price.

RIA Novosti

lutherquick’s comments: Many people think oil exchanges are the future, but think again. Exchanges maybe go away with cheap oil.  Exchanges may not be necessary if energy only goes up, forever.

This news article covering some basics about dollars and oil.  But with a focus on the fact that maybe dollar dominance is ending. It’s a big project that the Russian Federation has, but the chances of success are greater as America racks up more debt.  Power is slipping away from oil exchanges and moving toward oil producers.

Maybe Russia doesn’t want an exchange, in the end.