The euroisation of OPEC - Phase 2

Discussion/News about Europe, EU, politics

Moderators: Phaseolus, Fons

Post Reply
John S
Euro-Regular in Training
Euro-Regular in Training
Posts: 101
Joined: Tue Feb 25, 2003 12:26 am
Location: Cleveland, Ohio

The euroisation of OPEC - Phase 2

Post by John S »

The invasion and conquest of Iraq by the US has temporarily ended any chance of the euro becoming a currency to be used in the sale of oil from OPEC. However, the EU and the fathers of the Euro have found a new point of entry into OPEC for the euro. That entry point is Libya.

Recently Libya has renounced its terrorist ways. It will no longer sponsor terrorism, nor will it manufacture nor possess weapons of mass destruction. Libya is in a sense removing itself from everything that Iraq had been accused of as an excuse for an invasion. Libya is also paying the victims of its terrorist aggression compensation.

Why is this so important for the euro? Simple. Once Libya, under EU guidance is judged fit to be accepted back into the family of nations, Libya can then officially switch its oil sales to euros. Becoming the first active OPEC member to do so. And, there is nothing Washington can do to stop it or to reverse it.

Would George Bush openly start a war with Libya over a currency unit? Would he risk having nuclear bombs falling on American cities?

Saddam's arrogance cost the euro its place in OPEC. Libya's repentance will be the euros redemption.

This is just my opinion, but I don't think I am wrong.

Any comments?
MDeen
Euro-Master
Euro-Master
Posts: 2038
Joined: Mon Jul 15, 2002 11:52 am
Location: Helden, The Netherlands
Contact:

Post by MDeen »

I don't know if it will be such a good thing to have oil being sold in Euros at the moment. The dollar is weak, because of (mostly) US problems (the war amongst others) and the euro is strong. Having oil being sold in euros now will only compromise the dollar's position even more.

And apparently, according to newsreports I read and hear, a weak dollar is bad for Europe because European products are expensive in the US and so they won't be sold, but a strong dollar is also bad for Europe because US products are expensive and we have to pay too much for them.
So a strong euro is good for the US and a weak euro good for the US? Am I confused or what :roll: I don't know what the tradebalance is between the US and Europe, so I can't really see which is better.

The positive part about a weak dollar is cheap oil (because it is traded in dollars), but the oilprice is high anyway at the moment because of all the scuttle in the Middle-East and Bush's war on terror.

Can't you Americans do us a favour? Don't vote Bush anymore. It would be a real disaster to have one of his daughters as a president :twisted:
User avatar
Olivier
Euro-Master
Euro-Master
Posts: 3358
Joined: Tue Feb 12, 2002 9:58 pm
Location: Evian

Re: The euroisation of OPEC - Phase 2

Post by Olivier »

John S wrote: Once Libya, under EU guidance is judged fit to be accepted back into the family of nations, Libya can then officially switch its oil sales to euros. Becoming the first active OPEC member to do so.
I don't see the link between the come back of Libya on the international stage and its oil priced in euros... :?:

Is there an agreement between Libya and the EU?

There are other countries which would be more interested in trading oil in euros: Algeria, Norway, the UK... which have more trade exchanges with the Eu than with the USA.
Other for political reasons will follow but don't dare to be the first: Indonesia, Venezuela, Nigeria, the Arabs...

Olivier (never very far from the forum)
Ning
Euro-Regular in Training
Euro-Regular in Training
Posts: 59
Joined: Thu Jan 15, 2004 12:01 am
Location: Strasbourg, France

Post by Ning »

I don't see the link between Libya and Euro. I don't think OPEP will trade oil in euro (maintly because Saoudia is under american control). But if it happen, the first countries will be more likely European countries (either Russia or Norway).
Anyways, in 50 years, there will not be oil anymore at all. (I hope there will not have war for water...)
Guest

Re: The euroisation of OPEC - Phase 2

Post by Guest »

Olivier wrote:
John S wrote: Once Libya, under EU guidance is judged fit to be accepted back into the family of nations, Libya can then officially switch its oil sales to euros. Becoming the first active OPEC member to do so.
I don't see the link between the come back of Libya on the international stage and its oil priced in euros... :?:

Is there an agreement between Libya and the EU?

There are other countries which would be more interested in trading oil in euros: Algeria, Norway, the UK... which have more trade exchanges with the Eu than with the USA.
Other for political reasons will follow but don't dare to be the first: Indonesia, Venezuela, Nigeria, the Arabs...

Olivier (never very far from the forum)
We don't know what goes on insecret behind closed doors. There may be some agreement.

Libya would be the perfect country for the EU to get the euro into OPEC. All the EU needs is to get its feet into the door.

I just think it odd that Libya would do an about face in its relationship with the west, even when it isn't threatened by the US for regime change.

It is just my opinion.
Guest

Post by Guest »

Ning wrote:I don't see the link between Libya and Euro. I don't think OPEP will trade oil in euro (maintly because Saoudia is under american control). But if it happen, the first countries will be more likely European countries (either Russia or Norway).
Anyways, in 50 years, there will not be oil anymore at all. (I hope there will not have war for water...)
Russia and Norway are not members of OPEC. See http://www.opec.org
Ning
Euro-Regular in Training
Euro-Regular in Training
Posts: 59
Joined: Thu Jan 15, 2004 12:01 am
Location: Strasbourg, France

Re: The euroisation of OPEC - Phase 2

Post by Ning »

Anonymous wrote:
Olivier wrote:
John S wrote: Once Libya, under EU guidance is judged fit to be accepted back into the family of nations, Libya can then officially switch its oil sales to euros. Becoming the first active OPEC member to do so.
I don't see the link between the come back of Libya on the international stage and its oil priced in euros... :?:

Is there an agreement between Libya and the EU?

There are other countries which would be more interested in trading oil in euros: Algeria, Norway, the UK... which have more trade exchanges with the Eu than with the USA.
Other for political reasons will follow but don't dare to be the first: Indonesia, Venezuela, Nigeria, the Arabs...

Olivier (never very far from the forum)
We don't know what goes on insecret behind closed doors. There may be some agreement.

Libya would be the perfect country for the EU to get the euro into OPEC. All the EU needs is to get its feet into the door.

I just think it odd that Libya would do an about face in its relationship with the west, even when it isn't threatened by the US for regime change.

It is just my opinion.
and why would it be better for the EU ? Now with a strong euro, oil is very cheap here. If oil were traded in euro, oil would be more expensive. I don't see the advantage.
User avatar
Olivier
Euro-Master
Euro-Master
Posts: 3358
Joined: Tue Feb 12, 2002 9:58 pm
Location: Evian

Re: The euroisation of OPEC - Phase 2

Post by Olivier »

Ning wrote:
Anonymous wrote:
Olivier wrote:
John S wrote: Once Libya, under EU guidance is judged fit to be accepted back into the family of nations, Libya can then officially switch its oil sales to euros. Becoming the first active OPEC member to do so.
I don't see the link between the come back of Libya on the international stage and its oil priced in euros... :?:

Is there an agreement between Libya and the EU?

There are other countries which would be more interested in trading oil in euros: Algeria, Norway, the UK... which have more trade exchanges with the Eu than with the USA.
Other for political reasons will follow but don't dare to be the first: Indonesia, Venezuela, Nigeria, the Arabs...

Olivier (never very far from the forum)
We don't know what goes on insecret behind closed doors. There may be some agreement.

Libya would be the perfect country for the EU to get the euro into OPEC. All the EU needs is to get its feet into the door.

I just think it odd that Libya would do an about face in its relationship with the west, even when it isn't threatened by the US for regime change.

It is just my opinion.
and why would it be better for the EU ? Now with a strong euro, oil is very cheap here. If oil were traded in euro, oil would be more expensive. I don't see the advantage.
Oil is less and less cheap everywhere... :?
User avatar
Gauss
Forum Moderator
Forum Moderator
Posts: 1685
Joined: Tue Feb 25, 2003 11:35 pm

Post by Gauss »

MDeen wrote:I Having oil being sold in euros now will only compromise the dollar's position even more.
Well, that'll be a part of the idea. And if you get euros for your oil you won't mind the dollar price any more.
User avatar
Olivier
Euro-Master
Euro-Master
Posts: 3358
Joined: Tue Feb 12, 2002 9:58 pm
Location: Evian

Post by Olivier »

Gauss wrote:
MDeen wrote:I Having oil being sold in euros now will only compromise the dollar's position even more.
Well, that'll be a part of the idea. And if you get euros for your oil you won't mind the dollar price any more.

Do you know how to explain the value of the oil nowadays? It costs more than 40$ the baril!
How much is a litter of gaz in Europe?
User avatar
Dakkus
Euro-Master
Euro-Master
Posts: 4734
Joined: Tue Jun 24, 2003 3:59 pm
Location: No Helsinkiem, Somijas / Iš Helsinkio, Suomijos
Contact:

Post by Dakkus »

Currently cheapest one is Teboil in Hämeentie in Turku. There 95E is 1,072€/litre
The most expensive one is right now Shell in Rahkoila in Hattula. The price is 1,206€.

This info is from the site http://polttoaine.net/ , which is a site for comparing the price of gasoline in different places. The prices are from yesterday.

The same site tells also this: (City, Company, (Exact place in the city), Date, Price)
Estonia:
Tallinna, Statoil, Enda, 29.03., 0.623
Tallinna, Neste A24, Suur-Ameriika, 29.03., 0.607

Spain:
Madrid, Repsol, Ciudad Lineal, 05.05., 0.910

The Netherlands:
Venlo, Shell, 13.04., 1.158

Luxembourg:
Schengen, Aral 13.04. 0.867

Germany:
Berliini, Havelpark, Dövritzer W., 06.05., 1.119
Berliini, Esso, Bundesallee, 06.05., 1.189
Munchen, Shell, Verdistrasse, 06.05., 1.189
Muchen, Hamberger, Fiedenstr. 06.05., 1.158
Sinsheim, Aral, 13.04., 1.129

USA:
Kalifornia, 21.03., 0.390
Florida, Shell, Miami, 23.03., 0.366
Ko saka āboliņš? Pēk pēk pēk!
User avatar
Olivier
Euro-Master
Euro-Master
Posts: 3358
Joined: Tue Feb 12, 2002 9:58 pm
Location: Evian

Re: The euroisation of OPEC - Phase 2

Post by Olivier »

Anonymous wrote: Libya would be the perfect country for the EU to get the euro into OPEC. All the EU needs is to get its feet into the door.

I just think it odd that Libya would do an about face in its relationship with the west, even when it isn't threatened by the US for regime change.

It is just my opinion.
I don't think the EU needs to get a foot into the door. The market will change from dollar to the euro as soon as its trust is bigger in the euro than in the dollar...

The change won't be political, with a agreement for example with Libya, on my opinion. The change will occur if one of the biggest seller does not trust the dollar anymore and just want to be payed in another currency.
User avatar
Olivier
Euro-Master
Euro-Master
Posts: 3358
Joined: Tue Feb 12, 2002 9:58 pm
Location: Evian

Post by Olivier »

Gauss wrote:
MDeen wrote:I Having oil being sold in euros now will only compromise the dollar's position even more.
Well, that'll be a part of the idea. And if you get euros for your oil you won't mind the dollar price any more.
And so will the rest of the globe. A nightmare for the US economy.
Post Reply

Return to “Europe-Board”