Oil is not going up. It's the dollar going down.

Post #288,854 by a6l6e6x 7/13/07 10:58:16 AM Reply	Oil is not going up. It's the dollar going down. It just takes more dollars to buy the same old barrel of oil. [link\|http://www.upi.com/InternationalIntelligence/view.php?StoryID=20060118-052333-1392r\|UPI]: Tehran is preparing to open a bourse, a mercantile exchange and potentially a futures market, where traders can buy and sell oil and gas, along the lines of the International Petroleum Exchange (IPE) in London and the NYTMEX in New York. The differences are first, that this one would price its energy in euros, not dollars, and second, that it would not use West Texas Intermediate or Brent Crude (from the North Sea) as its standard oil for pricing. It would use a Persian Gulf-produced oil instead. o o o Such a move would not be welcomed in Washington, which swiftly moved after the fall of Baghdad in 2003 to reverse Saddam Hussein's impudent decision to start selling Iraqi oil for euros, rather than dollars. After all, the great benefit of running the world's reserve currency means that if all else fails, the United States Treasury can just print more and more of the stuff and pay for its oil imports that way. Alex Nobody has a more sacred obligation to obey the law than those who make the law. -- Sophocles (496? - 406 BCE)
Post #288,855 by JayMehaffey 7/13/07 12:01:52 PM Reply	Notice how old that article is? Iran has been trying to get this going for several years now with little progress. The US has been leaning on countries and companies not to support this. They have been threatening everybody involved, sellers and buyers of oil if they use this bourse and companies that provide software, hardware and communications if they work on the bourse. The end result is that this is still years away if ever. Jay
Post #288,857 by Another Scott 7/13/07 1:00:26 PM Reply	OTOH... [link\|http://www.bloomberg.com/apps/news?pid=20601087&sid=awYHprN5i52c&refer=worldwide\|Bloomberg]: July 13 (Bloomberg) -- Iran asked Japanese refiners to switch to the yen to pay for all crude oil purchases, after Iran's central bank said it's cutting holdings of the U.S. dollar. Iran wants yen-based transactions ``for any/all of your forthcoming Iranian crude oil liftings,'' according to a letter sent to Japanese refiners that was signed by Ali A. Arshi, general manager of crude oil marketing and exports in Tehran at the National Iranian Oil Co. The request is for all shipments ``effective immediately,'' according to the letter, dated July 10 and obtained by Bloomberg News. The yen rose on expectations for an increase in demand for the currency to buy shipments from Iran, Japan's third-largest oil supplier. Central bankers in Venezuela, Indonesia and the United Arab Emirates have said they will invest less of their reserves in dollar assets because of the weakening currency, while the United Nations Security Council is preparing for another round of sanctions against Iran because of the nation's nuclear research. ``What else can Japan do but to accept the request, once the oil producer sent its wish?'' said Hirofumi Kawachi, an analyst at Mizuho Investors Securities Co. in Tokyo. ``The tensions between the U.S. and Iran are escalating, and it's Iran's measure to hedge risk.'' [...] Cheers, Scott.
Post #288,863 by boxley 7/13/07 1:53:56 PM Reply	take the low dollars and buy lots of US realestate we will buy it back with less dollars later, well it worked once thanx, bill Quantum materiae materietur marmota monax si marmota monax materiam possit materiari? Any opinions expressed by me are mine alone, posted from my home computer, on my own time as a free american and do not reflect the opinions of any person or company that I have had professional relations with in the past 51 years. meep reach me at [link\|mailto:bill.oxley@cox.net\|mailto:bill.oxley@cox.net]
Post #288,872 by a6l6e6x 7/13/07 4:08:35 PM Reply	You may be right about the bourse, but... the real point is that the cost of crude oil to the US has gone up more than the cost of crude oil to EU countries or for that matter other countries whose currencies strengthened against the dollar. Alex Nobody has a more sacred obligation to obey the law than those who make the law. -- Sophocles (496? - 406 BCE)
Post #288,858 by mmoffitt 7/13/07 1:09:10 PM Reply	Indeed. See a couple posts down CAN dollar = US 95+ cents. bcnu, Mikem Microsoft Vista. The best reason ever to buy a Mac.

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