Re: OPEC Has Already Turned to the Euro

[Chris Burford]

Title: OPEC Has Already Turned to the Euro

This looks potentially enormously important.   Once data like this is in front of the eyes of international oil traders and governments, they cannot ignore it, however casual and tactful they may appear in their comments and over their business dinners.   It would explain a remark I caught on a CNN business programme from an executive of a major finance company, that global business already functions in what I think he described as "world money".   I presumed this to be not so much directly defined, as a notional shifting basket of exchange values against which the biggest capitalist concerns of course seek to stabilise themselves.   I have a working premise that the nature of inter-imperialist rivalry is such that the other imperialist blocs will avoid directly confronting the USA, but will do it covertly. This apparently purely technical data is ideal for this purpose.   The other implication I draw from this item is that in terms of impact on the domestic economy, the rise in the dollar price of oil will hit the US economy disproportionately hard compared to the European economy.   (As of course it should. Why should the citizens of the US have a free lunch at the expense of the world, just to help Bush get re-elected?)   Chris Burford London ----- Original Message ----- From: Funke Jayson J To: [EMAIL PROTECTED] Sent: Tuesday, June 01, 2004 5:56 PM Subject: [PEN-L] OPEC Has Already Turned to the Euro OPEC Has Already Turned to the Euro As the dollar's rate of exchange continues to fall against the world's major currencies, there has been much speculation about the likely knock-on effect. One area receiving a lot of attention is crude oil in general, and OPEC in particular. It has been suggested that OPEC may begin pricing crude oil in terms of the euro, and further, that OPEC may actually begin invoicing its crude oil exports in terms of euros. This latter step would require shifting out of dollars, with OPEC receiving euros in payment. These possibilities have been scoffed at by many whose interests are tied to the fate of the dollar, but it seems that OPEC has already taken the first step - it appears to be pricing crude oil in terms of the euro. This conclusion is apparent from the following table. The import data is from the Department of Commerce report entitled U.S. International Trade in Goods and Services. The source for the euro exchange rate is the Federal Reserve, and I have calculated the euro's average exchange rate to the dollar for each year based on daily data. Full at: http://goldmoney.com/en/commentary/2004-02-18.html Jayson Funke   The information contained in this e-mail may be confidential and is intended solely for the use of the named addressee. Access, copying or re-use of the e-mail or any information contained therein by any other person is not authorized. If you are not the intended recipient please notify us immediately by returning the e-mail to the originator.(B)