OPEC Has Already Turned to the Euro...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.
GoldMoney Alert
February 18, 2004
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US Imports of Crude oil
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|||||
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(1)
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(2)
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(3)
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(4)
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(5)
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(6)
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|
Year
|
Quantity (thousands of barrels)
|
Value (thousands of US dollars)
|
Unit price (US dollars)
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Average daily US$ per € exchange rate
|
Unit price (euros)
|
|
2001 |
3,471,066
|
74,292,894
|
21.40
|
0.8952
|
23.91
|
|
2002
|
3,418,021
|
77,283,329
|
22.61
|
0.9454
|
23.92
|
|
2003
|
3,673,596
|
99,094,675
|
26.97
|
1.1321
|
23.82
|
We can see from column (4) in the above table that in 2001, each barrel of imported crude oil cost $21.40 on average for that year. But by 2003 the average price of a barrel of crude oil had risen 26.0% to $26.97 per barrel. However, the important point is shown in column (6). Note that the price of crude oil in terms of euros is essentially unchanged throughout this 3-year period.
As the dollar has fallen, the dollar price of crude oil has risen. But the euro price of crude oil remains essentially unchanged throughout this 3-year period. It does not seem logical that this result is pure coincidence. It is more likely the result of purposeful design, namely, that OPEC is mindful of the dollar's decline and increases the dollar price of its crude oil by an amount that offsets the loss in purchasing power OPEC's members would otherwise incur. In short, OPEC is protecting its purchasing power as the dollar declines.
Oil firms face tough disclosure rules
Houston Chronicle | Dec. 14, 2008 | David Ivanovich
Posted on 12/14/2008 6:04:38 PM PST by thackney
http://www.freerepublic.com/focus/f-news/2148809/posts
Oil Companies Voting With Their Feet
IBD Editorials | December 12, 2008
Posted on 12/12/2008 5:41:13 PM PST by Kaslin
http://www.freerepublic.com/focus/f-news/2147949/posts
Russia: Signs of a Kremlin Fearful Of Unrest (Revolution under $20 per barrel)
Moscow Times | 12/12/08 | Nikolaus von Twickel
Posted on 12/13/2008 9:13:49 AM PST by TigerLikesRooster
http://www.freerepublic.com/focus/f-news/2148214/posts
Oil prices rise as Russia mulls output cut
AFP via Google News | Dec 10, 2008 | AFP
Posted on 12/10/2008 8:58:43 AM PST by thackney
http://www.freerepublic.com/focus/f-news/2146221/posts
Platts Survey: November OPEC Oil Output Fell to 31.38 Mil. Barrels Per Day
Market Watch | Dec. 9, 2008 | Platts
Posted on 12/10/2008 8:16:44 AM PST by thackney
http://www.freerepublic.com/focus/f-news/2146187/posts
WSJ: Saudi Arabia’s Oil Equation
Dow Jones Newswire via Rig Zone | December 08, 2008 | Liam Denning
Posted on 12/08/2008 10:33:37 AM PST by thackney
http://www.freerepublic.com/focus/f-news/2145010/posts
Saudi May Cut Oil Supply More As Rest of OPEC Looks On
Dow Jones Newswire via Rig Zone | December 4, 2008 | Yee Kai Pin; Florence Tan
Posted on 12/04/2008 7:24:09 AM PST by thackney
http://www.freerepublic.com/focus/f-news/2142751/posts
OPEC should cut overhang to bring stocks to 52 days cover
Platts | 4 Dec 08 | Lies Sahar
Posted on 12/04/2008 6:04:43 AM PST by thackney
http://www.freerepublic.com/focus/f-news/2142712/posts
OPEC: Get set for oil shock and awe
Press TV | 06 Dec 2008 | Press TV
Posted on 12/07/2008 1:20:50 PM PST by BGHater
http://www.freerepublic.com/focus/f-news/2144577/posts
AP Interview: OPEC head predicts output cuts
AP | Dec 06, ‘08 | Alfred de Montesquiou
Posted on 12/07/2008 12:50:34 AM PST by blueplum
http://www.freerepublic.com/focus/f-news/2144378/posts
-kingdom of the buried lead-
OPEC Urges Nations to Join Up or Cut Output
Dow Jones Newswire via Rig Zone | December 02, 2008 | Dow Jones Newswires
Posted on 12/02/2008 1:28:55 PM PST by thackney
http://www.freerepublic.com/focus/f-news/2141680/posts
“The contract closed $1.70 lower on Friday after the US Senate failed to pass a bailout for automakers”
Oil price heading towards $25-30 a barrel?Goldman Sachs'... energy equity research team, led by Arjun Murti, said in another report that it is cutting its forecast for 2009 to 45 dollars, from 80 dollars previously, due to global economic slowdown. Murti, who is known as 'oil guru', had shot to fame for rightly predicting a spike in the price to USD 100 when it was trading at around USD 40 level. Later in May, Murti forecast a spike to 150-200 dollars level in the next 6-24 months. In an interview with the stock market weekly Barron's in June, when oil price were hovering at about 135 dollars, Murti had said that oil prices might fall below 75 dollars, but after 20 years. The latest report from Murti's team has, however, said that there was a possibility of prices falling below USD 40 level shortly.
Sunday, December 14, 2008
(same source)
Low oil prices will help auto sales through January 20, 2009. After that, all bets are off.
OPEC urges Russia to join the group, cut production
Oil & Gas Journal | Dec 15, 2008 | Eric Watkins
Posted on 12/15/2008 2:29:30 PM PST by thackney
http://www.freerepublic.com/focus/f-news/2149240/posts