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More Bad News on the Horizon

HAIRYHAIRY Member Posts: 23,606
edited May 2006 in General Discussion
Putin proposes creation of ruble-denominated oil, gas exchange

By RIA

05/15/06 -- -MOSCOW, May 10 (RIA Novosti) - President Vladimir Putin said Wednesday that a ruble-denominated oil and natural gas stock exchange should be set up in Russia.

Speaking before both chambers of parliament, cabinet members, and reporters, Putin said: "The ruble must become a more widespread means of international transactions. To this end, we need to open a stock exchange in Russia to trade in oil, gas, and other goods to be paid for with rubles."

"Our goods are traded on global markets. Why are not they traded in Russia?" Putin said.

And another piece of bad news for the US economy:

Iran to require oil payments in euros

By United Press International

TEHRAN, May 15 (UPI) -- Iranian President Mahmoud Ahmadinejad announced Friday that in July Iran will abandon dollar payments for its oil and natural gas exports in favor of euros.

The move comes amid a standoff between Tehran and Washington over Iran's nuclear fuel enrichment program. The Bush administration insists the program is cover for a nuclear weapons program, a charge that Iran denies.

All current international oil transactions on the New York Mercantile Exchange and London's International Petroleum Exchange are priced in dollars.

Middleeastforex.com reported May 13 that Ahmadinejad announced the change Friday during a visit to Baku, Azerbaijan.

Many political observers see the decision as an attempt to pressure Washington, which is attempting to line up other U.N. Security Council members to act against Iran for its nuclear policies.

Iran has also proposed establishing a euro-based Iranian oil bourse to compete with NYMEX and the IPE. The proposal was first put forward in the beginning of the Third Development Plan (2000-2005), and began to receive serious attention in 2005. Some observers speculate that the Iranian switch to euros could negatively affect the dollar, as many central banks from oil importing nations could choose to stock up their currency reserves with euros rather than dollars.

Comments

  • dcon12dcon12 Member Posts: 32,038 ✭✭✭✭
    edited November -1
    Whewwww, I thought you meant Saxon was retiring and would be here more. Don
  • amsptcdsamsptcds Member Posts: 679
    edited November -1
    See?
    The Moslem world does not want peace.
  • kristovkristov Member Posts: 6,633
    edited November -1
    45% of Iranian crude oil exprts go direct to the EU so payment in Euros makes perfect sense. An additional 15% of Iranian crude goes to China and even though the PRC maintains foreign exchage credits with the United States of well over $700 billion, none of this can be used to purchase oil directly from Iran and must instead be converted into other currencies before going on to Tehran. The United States does not import any petroleum from Iran so there is no issue with Euro vs Dollar transactions on our end. Canada, Mexico, Venezuela, Saudia Arabia, Nigeria, Iraq, the Virgin Islands, Russia and the UK supply over 75% of our imported petroleum and as long as they keep accepting Greenbacks were are safe. If Mexico and Venezuela (30% of toal imports)ask for Euros were are in trouble.
  • dolfandolfan Member Posts: 4,159
    edited November -1
    quote:Originally posted by HAIRY
    And another piece of bad news for the US economy:
    Me thinks this is actually GREAT news for Hairy.[;)][}:)]
  • DocDoc Member Posts: 13,898 ✭✭✭
    edited November -1
    Do you not want me here?
    ....................................................................................................
    Too old to live...too young to die...
  • whiteclouderwhiteclouder Member Posts: 10,574 ✭✭✭
    edited November -1
    quote:Originally posted by SaxonPig
    Do you not want me here?


    Liked ya better as jist a normal guy.

    Clouder..
  • HAIRYHAIRY Member Posts: 23,606
    edited November -1
    quote:Originally posted by amsptcds
    See?
    The Moslem world does not want peace.
    And how do you come to this conclusion? BTW, when did Russia become Muslim?
  • HAIRYHAIRY Member Posts: 23,606
    edited November -1
    quote:Originally posted by dolfan
    quote:Originally posted by HAIRY
    And another piece of bad news for the US economy:
    Me thinks this is actually GREAT news for Hairy.[;)][}:)]
    Why the attack? My dollar gets spent for gas just as yours does.
  • KSUmarksmanKSUmarksman Member Posts: 10,705 ✭✭✭
    edited November -1
    I doubt a ruble-based exchange for oil is bad news.
    The ruble is much weaker than the dollar, the euro is stronger. So euro exchange=bad, ruble exchange=good
  • DocDoc Member Posts: 13,898 ✭✭✭
    edited November -1
    I've never been normal.

    But I am sorry that I disappoint you.
    ....................................................................................................
    Too old to live...too young to die...
  • kristovkristov Member Posts: 6,633
    edited November -1
    We get about 220,000 barrels of crude oil per day from Russia, at a cost of a little over $13 million. That equates into 351,000,000 Rubles at current exchange rate which is about 27 to 1. You can buy Rubles on foreign currency markets for well below the 27 to the Dollar rate (say 30 to 1)and the Russians know this perfectly well. Paying for Russian oil with Rubles purchased on the open market could amount to as much as a 1% discount in the price of crude.
  • jaflowersjaflowers Member Posts: 698 ✭✭✭✭
    edited November -1
    one thing no one has mentioned yet about the iran oil for dollars deal. ALL countries buying and selling oil has always been done in DOLLARS. if a major player like iran no longer accepts them, then the countries buying our dollars to purchase their oil will no longer need to buy OUR money. this directly affects our dollars value on the world market, in other words OUR DOLLAR HAS LESS VALUE!!! if this starts a trend with other oil nations then the US may have to buy someone elses currency in order to purchase oil in the future further adding to the demise of our countries economy and our money. start buying gold and silver and get rid of your greenbacks. this is only the beginning. there is allot more bad news out there like most major nations getting rid of their US dollars and buying gold, platinum and other metals. Do some reading, it's only going to get worse.[V]
  • amsptcdsamsptcds Member Posts: 679
    edited November -1
    quote:Originally posted by HAIRY
    quote:Originally posted by amsptcds
    See?
    The Moslem world does not want peace.
    And how do you come to this conclusion? BTW, when did Russia become Muslim?


    Sorry... I should have qualified that...

    I saw that (in the article or whatever above) Iran will demand Euros for Oil, in lieu of dollars.

    And I figure that if the really want peace, they would not have done such a thing, until the major shift to euros comes.
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