Oil to Remain Priced in Dollars

Posted by Rob

December 11, 2007

There has been much discussion in recent months regarding the continuing slide in the value of the USD. Much speculation in the global currency/commodities markets suggested a switch to a more valuable currency for pricing barrels of crude oil. Members of OPEC showed a keen interest in pricing oil in something other than the depreciating US Dollar.

Oil in Dollars

The largest oil exporter, Saudi Arabia will continue to price oil in US Dollars. Despite calls from other OPEC countries to move over to another currency, Saudi will continue with the USD. “Saudi Arabia rejected calls by Iran and Venezuela to move away from the dollar last month at a meeting of OPEC ministers in Riyadh.” - Bloomberg. This is despite the US Dollar falling 10% against the Euro in 2007.

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