Posted on 08/21/2019 7:38:34 PM PDT by NorseViking
MOSCOW (Reuters) - Russia's Rosneft, one of the world's top oil producers and exporters, has notified customers that future tender contracts for oil products will be denominated in euros not dollars, five trading sources told Reuters.
The move, which could come as soon as this year, is likely to be seen as an attempt to offset any potential negative impact of U.S. sanctions on Russia.
Rosneft, which accounts for over 40% of oil output in Russia, produced 45.8 million tonnes of oil products at home in the first six months of this year - from diesel and gasoline to fuel oil and petrochemicals.
Around half was exported to west and south-east Europe and to Asia, according to the company's own data.
The bulk of oil products for export are sold at tenders: Rosneft holds annual tenders as well as a number of spot or short-term tenders, with BP, Glencore, Trafigura, Vitol and Cetracore among top buyers.
Last year, trading sources told Reuters that Russian energy majors were asking Western oil buyers to prepare to make payments in euros instead of dollars.
Rosneft last week asked buyers to use the euro as the default currency for the first time in a spot tender to sell naphtha, an official company document showed.
Rosneft was included in a list of some U.S. sanctions imposed on Russian companies in 2014, although those sanctions do not limit U.S. dollar usage in Rosneft tenders.
Traders said they believed Rosneft's latest move was intended to protect the Russian company in case new and unpredictable sanctions are imposed on it by the United States.
(Excerpt) Read more at yahoo.com ...
When did the market move from barrels to tonnes?
It some markets it always was tonnes.
They have used both. If a country is on the metric system they use tonnes. Countries using tonnes convert to barrels when exporting to the US.
Barrels, by the way, was the original when crude oil was shipped in Pennsylvania in wooden barrels.
Nixon & Kissenger gave us the Petro Dollar to stabilize our currency after Nixon took us off the gold standard and our currency destabilized.
It worked until Carter screwed the Sha of Iran and didn’t uphold Nixon’s Petro Dollar agreements.
Ronald Reagan stabilized the Petro Dollar.
Bush attacked Sadam Hussein and Iraq as Hussein was selling oil for Euros and Yen, thus destabilizing our currency.
The future could be very interesting if the Petro Dollar is destabilized.
The end of the Petrodollar is in sight if this is true.
On the plus side, when international buyers don’t have to have the Dollar for their oil all this social spending will have to be greatly curtailed.
Rioters and looters should be shot by the ordinary citizens whose lives, persons and property they threaten.
Blasphemous!
This is a big deal. It could lead others to abandon the US Dollar as the world’s reserve currency.
This would result in less financing of huge American debt by others. It would also render US sanctions far less effective.
For this, we can thank the NeoCons & John Bolton.
More & more US sanctions on other nations are inducing them to stop using the US Dollar as the primary means of exchange.
This is blowback.
NOT it will never happen. We have all the leverage to make those currencies become useless.
How? Some of those nations have huge foreign exchange reserves and they can control the direction of their currencies. The US has virtually no foreign exchange reserves. It can print money, but that debases the Dollar and makes other nations even less prone to using it a reserve currency.
“We have all the leverage to make those currencies become useless.”
Maybe. But I think that in order to do this at this point, U.S. would need to double down on evil.
1. U.S. could increase illicit drug trade. Siezures by dea could be increasingly recycled by middlemen and sold domestically and abroad. Same thing with human trafficking with agencies taking a cut of the profits (bribes) to avoid investigations.
2. Wars. Increasing political instability typically causes a flight to the strongest military power, and that has been the U.S. since 1945. When countries like Iran, Syria, Libya sep out of line, they pay the price. With threats of war come orders for armaments.
At this point, our government has been terminally compromised because of the federal police state and the corrupt bureaucracies. They are controlled by statists. Trump can’t control them.
That is just too funny.
That’s it damnit.
Now, we will stop dealing in Russian whore porno and switch to Romanian.
“” “” NOT it will never happen. We have all the leverage to make those currencies become useless.”” “”
And to what purpose?
In reality you can tread on all the people some of the time and some of the people all the time, but you cannot tread on all the people all the time.
Büros
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