Oil in Euros

[John S]

It would not be in the best interest of the EU, or for that matter any other country, if OPEC completely switched to euros. The best move for OPEC and for the EU and US is for OPEC to price its oil in a basket of currencies. This would include the US dollar, as well as the euro, the Swiss Franc, Japanese Yen, and/or what ever currency would be stable enough to be used as an oil currency.

A diversity of currencies would end US control and dollar hegemony. The oil revenue earned in euros, would be invested in the EU and help finance the developments of the economies of the 10 new countries, as well as offset the continued costs to the German economy of rebuilding the former DDR.

It is no secret to any government in the world, that dollar hegemony and the sole use of the dollar in the buying and selling of oil and other commodities benefits the US economy immensely. The thinking must be that some of the benefit must be shared and spread around to other nations and economies. I believe that the EU is secretly working with OPEC to allow for a partial sale of oil in euros. At least to the EU countries. I would expect to see a change in policy sometime shortly after May of 2004, when the 10 eastern European countries fully ascend.

I heard it said the the expanded EU will account for 33 % more oil usage from OPEC countries then the US. That alone is a significant reason for the EU to be able to buy oil in euros.

It is a win-win situation for Europe and OPEC too.

[Olivier]

I found these very interesting articles:

http://www.simedia.org/new/soc-econ-pol ... lapse.html

http://www.atimes.com/atimes/Global_Eco ... 4Dj02.html

Thank you, John!
I'll read that tonight.

I have found very interesting articles and studies, this week. It's all in french, but I'll try to put something here at the end of the week.
I have been thinking about the criteria which would make the world switch from the USDollar to the Euro. It's very interesting. A bit technical, but interesting anyway.

I come back soon, about it.

[Olivier]

It is a win-win situation for Europe and OPEC too.

I agree with all this.
The best for the world economy is stability. We all need stability in the monetary affairs, to focus on other problems: unemployment, deficits and debts, lack of growth...

I like the idea of a basket of currencies for the Oil. The system of a basket worked for Europe, with the ECU. Why not apply this for other problems...

"read you soon" for the week end!

Olivier