If & When will the world suddenly starts selling oil in Euros instead of U.S. Dollars?

Question

Is the U.S. economy in for deeper trouble than it is already now,since the Euro is now the stronger currency?

Answer 1

this should happen soon.. since the USA is going deeper and deeper in to mayhem and crisis. We can't trust the US dollar anymore, not stable at all.. and the USA is not the super power that it use to be, it's a shadow of itself... EURO rules. As the other guy said up here, people might not like to be payed in dollars because they never know what it will worth tomorrow.. euro is a lot more stable.



the USA want the world to follow their way of going things but they can't even manage their own economy...

Answer 2

I can't wait until this happens! Less inflation!

Answer 3

Whether prices are quoted nominally in euros or dollars, the currencies are readily convertible into one another. Yes, dollars are worth less...but part of the rise in the price of oil in dollar terms is to compensate for the falling value of the dollar. Oil prices aren't up nearly as far in terms of other currencies as they are in terms of dollars. The quote on oil in dollars is immediately translated into Euros and other currencies at current exchange rates. If they choose to quote oil in terms of euros instead, it would mean that the price would be translated from Euros to dollars rather than from dollars to Euros. Any Middle Eastern country that would rather have Euros than dollars for oil can swap currencies on the forex market. So as it is, it isn't that difficult to get payment in any currency they want. Whether you quote oil as $114 or 73 Euros...it translates the same.



I think the bigger issue is whether the US currency will continue to be the reserve currency for the world. China has huge (about $1 trillion) of US currency in reserves. In many countries, dollars are the real currency because there is no faith in the local currency. If the Euro were to become the proxy currency of choice instead of the dollar, that would be very bad for the dollar, as you would have a lot of people looking to unload dollars, and nowhere for them to go.



In terms of the US economy, the dollar is a symptom of all the private and public debt we've been running up. Running these deficits increases the supply of dollars in the hands of others. Increased supplies usually leads to lower prices and values. The lower dollar should help us from a growth standpoint, as US products will be relatively cheaper to foreigners. The price will be paid in inflation, because imports will become more expensive.

Answer 4

Message to the USA



youre f*cked lol

Answer 5

international oil trading is usually done in us$, although some countries have tried and are doing deals on other currencies. However these are "niche" transactions and on specific occasions. Iran and Russia are doing some oil businesses in euro or rubbles. Trade finances in international oil are usually via global banking facilities and these are usually dominated by Western or US banking circles. To get to the stage where alternative currency is able to provide alternative to us$, a critical mass of interested parties have to be present. Currently this situation is not the case

Answer 6

Considering it is global knowledge that the American economy is in strife at the moment, the problem would most likely be greater then we know. As the American government is extremely skilled in covering things up. I will not give u an exact date as this would be a complete guess, but i believe that sooner or later it will collapse unless a more stable resource is found to base the economy around. When this occurs another superpowers currency will be adopted.

Answer 7

that was the rumor right before the Iraq invasion. Saddam was going to switch to euros...so there's another reason we invaded..not WMD

Answer 8

but the pound has always been the stronger currency?



and yes they will be in bigger trouble been learning about it all at uni. oh god america is in trouble!!

Answer 9

In mid-2003 Iran broke from tradition and began accepting Eurodollars as payment for its oil exports from its E.U. and Asian customers. What is now called petroeuros. Most oil exports are still being accepted as payment in petrodollars, or pay in dollars to receive oil.

Iran of course has begun what is now called the euro-denominated Internet-based oil exchange system for global oil sales.

The vast majority of the world’s oil is traded on the New York NYMEX (Mercantile Exchange) and the London IPE (International Petroleum Exchange), Iran has entered this exchange market in a new way.



Here are a few URL sites that explain what has been happening and what seems to be what may continue into the future.



http://www.projectcensored.org/top-stories/articles/9-irans-new-oil-trade-system-challenges-us-currency/



http://www.ccc.nps.navy.mil/si/nov03/middleEast.asp



Hope this enlightens you somewhat more on this issue.



Enjoy your day,



TS

Answer 10

i doubt this will happen

Answer 11

Didn't watch the video, but people in general have no idea the far reaching power the federal reserve (which is neither federal, nor has any reserve) has over their daily lives. All central banks and their pernicious practice of fractional reserve banking to create a debt that is mathematically and exponentially designed to never be able to be paid off are designed intentionally sooner or later fail and sink the economy of any nation unfortunate enough to have one mandated by its "leaders". "And the debt of the United States shall not be questioned" 16th Amendment to the US Constitution. Oh, really? Says who? And what are they going to do if I do question it - send the Rothschilds after me? Please. All so-called "wars" against this or that are but pretexts to further the agenda of the one-world government bozos, and Iraq was no exception to their policy.

Answer 12

How would I know?