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
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Quantity (thousands of barrels)
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Value (thousands of US dollars)
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Unit price (US dollars)
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Average daily US$ per € exchange rate
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Unit price (euros)
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2001 |
3,471,066
|
74,292,894
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21.40
|
0.8952
|
23.91
|
|
2002
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3,418,021
|
77,283,329
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22.61
|
0.9454
|
23.92
|
|
2003
|
3,673,596
|
99,094,675
|
26.97
|
1.1321
|
23.82
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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.
NTSA of the day:
Iran Stops Selling Oil in Dollars
worldnetdaily.com | December 8, 2007 | Jerome R. Corsi
Posted on 12/09/2007 5:17:23 PM EST by kellynla
http://www.freerepublic.com/focus/f-news/1937098/posts
Oil Min: Iran Has Halted Oil Transactions In Dollars -AFP
nasdaq.com | 12-08-07 0440ET | staff
Posted on 12/10/2007 11:46:25 AM EST by kellynla
http://www.freerepublic.com/focus/f-news/1937410/posts