Russia Is Actually Abandoning The Dollar

[prohumanity]

May be you have got more recent figures... my figures are from 2011-12 , at that time, unemployment rates in Greece and Spain were around 30 to 40 % and in Ireland and Portugal around 20-25%. You have to be clear about how the unemployment rates are calculated...In past , one full time job was equal to full 40 hours a week...now, one full time job is counted even if the person works only 30 hours. Second factor is ..when people lose their jobs ,they try hard and look for job for first 2 or 3 years and then, disappointed they stop applying for jobs . Do you know that these people who stop applying for jobs are not counted as Unemployed. People near retirement ,they also, give up and accept early retirement. I can site many other Accounting Mumbo-Jumbos in calculating unemployment rates..but you get the point. That's why we have different rates from different sources in different years.
Another factor is that ..with massive monetary and fiscal stimulus, their is temporary jump in the jobs but the real rates are the once which sustain for a longer period of time. I have no interest in misguiding DFIans. I know you seems a be emotionally hurt if you don't hear anything good about west. DFIan's are there to know the whole truth and nothing but the truth ...so differing opinions are valued here so we can sort out the reality better.

 

[Peter]

May be you have got more recent figures... my figures are from 2011-12 , at that time, unemployment rates in Greece and Spain were around 30 to 40 % and in Ireland and Portugal around 20-25%. You have to be clear about how the unemployment rates are calculated...In past , one full time job was equal to full 40 hours a week...now, one full time job is counted even if the person works only 30 hours. Second factor is ..when people lose their jobs ,they try hard and look for job for first 2 or 3 years and then, disappointed they stop applying for jobs . Do you know that these people who stop applying for jobs are not counted as Unemployed. People near retirement ,they also, give up and accept early retirement. I can site many other Accounting Mumbo-Jumbos in calculating unemployment rates..but you get the point. That's why we have different rates from different sources in different years.
Another factor is that ..with massive monetary and fiscal stimulus, their is temporary jump in the jobs but the real rates are the once which sustain for a longer period of time. I have no interest in misguiding DFIans. I know you seems a be emotionally hurt if you don't hear anything good about west. DFIan's are there to know the whole truth and nothing but the truth ...so differing opinions are valued here so we can sort out the reality better.

https://www.google.co.in/search?q=p..._sm=122&ie=UTF-8#q=portugal+unemployment+rate
Go to the above link which I have already posted(If you observe the graphs you will find out unemployment rates there in 2011 and 2012. The "worm" never peaked above 30%).
Or here
https://www.google.co.in/publicdata...0&tend=1404671400000&hl=en_US&dl=en&ind=false
Even in 2011 and 2012 the unemployment never reached above 30%. As for the calculation process, there maybe loopholes there.

 

[LETHALFORCE]

The world banking system operates on one simple premise of growth . When there is no
Economic growth in resources, stock. Market or real estate for a prolonged period there is
A serious threat to banking and currencies. There has been no growth for years in many
Western countries no matter how much money is printed or how the media spins the story
This has not changed.

 

[katsung47]

PM, it does not have an impact on the US economy, since the money change is not directed towards US goods. at the most what it will do is drive the Dollar down-- demand and supply economics. This suits the US very well because it makes it's exports more competitive.

.

I'm afraid it's much more serious than you think. Saddam and Gaddafi tried to abandon the dollar in their oil trading. Both were killed in war activated by the US. No impact?

Gaddafi gold-for-oil, dollar-doom plans behind Libya 'mission'?
.com/watch?v=GuqZfaj34nc
/GuqZfaj34nc

-

-------------------

Iraq nets handsome profit by dumping dollar for euro
Faisal Islam, economics correspondent
The Observer, Saturday 15 February 2003
A bizarre political statement by Saddam Hussein has earned Iraq a windfall of hundreds of million of euros. In October 2000 Iraq insisted on dumping the US dollar - 'the currency of the enemy' - for the more multilateral euro.

The changeover was announced on almost exactly the same day that the euro reached its lowest ebb, buying just $0.82, and the G7 Finance Ministers were forced to bail out the currency. On Friday the euro had reached $1.08, up 30 per cent from that time.

Almost all of Iraq's oil exports under the United Nations oil-for-food programme have been paid in euros since 2001. Around 26 billion euros (£17.4bn) has been paid for 3.3 billion barrels of oil into an escrow account in New York.
.theguardian.com/business/2003/feb/16/iraq.theeuro

 

[sob]

I'm afraid it's much more serious than you think. Saddam and Gaddafi tried to abandon the dollar in their oil trading. Both were killed in war activated by the US. No impact?

-

-------------------

These are conspiracy theories and nothing else. When Euro was launched everybody predicted the demise of the Dollar within a decade, but look where are we today.

We cannot wish away the Dollar and there is no other economy in the world that can remove/replace the pre dominant US economy.

Despite all the scandals that have tumbled out of the closet in recent times, the US economy is the most transparent and the accountability standards are high-- this in a nut shell translates to confidence in the currency and hence it being the number one choice amongst most of countries

 

[pmaitra]

These are conspiracy theories and nothing else.

Saddam Hussein wanted to abandon the Dollar. Subsequently, Iraq was invaded. Fact. (Were the Europeans reluctant to invade Iraq? Why was the term "Freedom Fries" coined?)
Gaddafi wanted to introduce the Gold Dinar as a pan-African currency. Subsequently, Libya was invaded. Fact. (How did Gaddafi's minister Musa Kusa get asylum in UK?)

Please use the simple concept of cui bono. Who benefited by taking out wealthy governments who wanted to abandon the Dollar?

And please, there is a thread (http://defenceforumindia.com/forum/...s-why-mainstream-views-different-reality.html) with a lot of information. Whether you agree or disagree with the posts, you can decide later, but first please read.

 

[Ray]

Nixon started it, Bush matured it and Obama is presiding over the funeral of the US financial, economy and military demise and giving way to China.

A typical case of cutting the nose to spite the face.

 

[katsung47]

Petro-dollar, the cause of Iran war

People think the nuclear ambition of Iran is the reason for Iran war. That is only right on Israel's part. For US part, it is petro-dollar.

US dollar is appointed currency in oil trading. Because the oil trade is a huge business, a large amount of dollar is locked up in that trade. That money is called petro-dollar. Why it is so important to US? Because it acts as a long term none interest loan The prosperous US economy partly was based on the petro-dollar - a long term loan without interest. Let me depict it in this way:

US bought a house from Japan (whom represents the oil customers of Iran) for one million dollars. US also bought another house from France (whom represents other oil customers of OPEC) for one million dollars. Japan and France use these two million dollars as fund to buy oil. The money was used in oil trading circle and never back to US. US enjoys the two houses almost free. He doesn't have to pay monthly mortgage payment. Not a penny for interest, nor for principle. All the cost was the printing of a green back paper. However, that green back paper - petro dollar, is still a debit note. How long is it? So far it's more than forty years - since dollar became the appointed oil trade currency.

But suddenly, Iran refuses to accept dollar. Japan has to ask US to exchange that one million dollar into Euro or yen. What US can do is: 1. to get the dollar back by export more merchandise. But he is not able to. He has a trade deficit already. 2. To get the dollar back with gold or foreign currency reserve. But he hasn't that much reserve. 3. To lock up that extra one million dollar in US Bond by raising the interest rate to attract the buyer. But he unwilling to do it. There is a sub-prime crisis in real estate market. Any interest increase will further devalue the house. Feds holds a large amount of real estates in my case, they don't allow such thing to happen. So to solve the problem, they go to the fourth option. 4. By pushing up the oil price.

France (other oil consumption countries) keeps one million dollar as oil trading fund. How much does he need if the oil price doubled? Two million. Thus the one million dollar Japan abandoned is absorbed by France. That's why the oil price jumped like crazy in recent days - a tricky way to keep US dollar from collapsing.

US has to pay for high oil price too. Ordinary people bear the cost. But the high oil price will hurt the economy. The condition won't last long. So war on Iran is unavoidable.

Of course, US is a "democratic" country. It can't start a war because others refusing to use its currency. Then beware of another 911 style false flag attack.

We know there was an incident of live nuclear head weapons being carried over the continental US by a B-52 last August. There is attempt of dirty bomb attack in Houston this year.
Quote, "State of Emergency: The US in the Final Six Months of the George W. Bush Administration
by Lewis Seiler and Dan Hamburg
June 13, 2008 by CommonDreams.org
.......
Former National Security Agency analyst and naval intelligence officer Wayne Madsen has been in Houston investigating the Carnaby case at great personal risk. Madsen believes Carnaby was involved both in heading off a potential war with Iran (by leaking Mossad plans to assassinate Hezbollah leader Hassan Nasrallah just days before Carnaby himself was killed) and in trying to forestall a potential terrorist attack on the port.
According to Madsen, "federal agents in Houston fear that 'another 9/11-type part false flag' attack is imminent, perhaps as early as July 4.".......

.commondreams.org/archive/2008/06/13/9596/

Another time factor for Iran war is the Olympic Game in August. China has interest in Iran. He is an oil customer of Iran. Olympic Game could be an extortion chip for China's support in Iran war.

 

[katsung47]

839. Iraqi crisis created to save dollar (6/18/2014)

In early June, Russia switches the oil payment from dollars to Euros.

Gazprom Signs Agreements to Switch from Dollars to Euros

Global Research, June 07, 2014

Gazprom Neft had signed additional agreements with consumers on a possible switch from dollars to euros for payments under contracts, the oil company's head Alexander Dyukov told a press conference.

"Additional agreements of Gazprom Neft on the possibility to switch contracts from dollars to euros are signed. With Belarus, payments in rubles are agreed on," he said.

Dyukov said nine of ten consumers had agreed to switch to euros.

Gazprom Signs Agreements to Switch from Dollars to Euros | Global Research

This is very important news. If people starting to abandon the dollar, US will be hurt seriously in economy. Yet the news was little reported by the mainstream media. Several days later, the ISIL rebel in Iraq activates an offensive. The puppet Iraqi government retreats without any resistance. As a result, the oil price goes up.

Oil prices spike as Iraq violence flares
By Mark Thompson @MarkThompsonCNN June 12, 2014

Oil prices spiked Thursday to levels not seen in nine months as escalating violence in Iraq sparked worries about crude exports.

Light crude oil futures touched $106 a barrel, up nearly 2% and the highest price since September 2013.

Oil prices spike as Iraq violence flares - Jun. 12, 2014

Since the money used in most oil trading is dollar, the higher oil price will force the buyer to keep more dollar in bank as purchasing power. It's a big amount if future option is included. Manipulating oil price becomes a strategy to save the dollar. Iraq is a big country of oil production and exportation. Its political stability has huge influence to oil price. US has turned it into a switch to adjust the oil price.

 

[sgarg]

The dollar has to go; and I contend that Euro will go before the dollar. The -----s in EU armour are already visible.

The Asians are the first to realize that dollar has to go. US debt levels are so high that it has made the dollar unviable.

Only military power cannot keep dollar afloat.

 

[katsung47]

844. To save the dollar by hitting the Euro (7/17/2014)

Someone argues,

Originally Posted by imaginethat
Russia is the world's largest exporter of oil. Any increase in the price of oil benefits Russia.

That's true. But oil price is the fastest way to adjust the demand of the dollar. We saw then the Euro – an alternative to the dollar, is threatened.

Portugal bank crisis shakes investor confidence
By Brigitte HagemannJuly 10, 2014

Lisbon (AFP) - Fears over the health of Portugal's largest listed bank, Banco Espirito Santo, sent its shares into freefall Thursday, shaking stock markets in Lisbon and across Europe and even the Atlantic.

Portugal bank crisis shakes investor confidence

Euro is the reserve currency next to the dollar. When dollar is weak that oil buyers have to use Euros for payment to Russian oil, what if Euro's value is threatened? Similar situation had acted four years ago when US had a financial crisis (the bankruptcy of Leman Brothers caused by sub-prime loan collapse), US resolved it by introducing the Greek financial crisis.

Wall St. Helped to Mask Debt Fueling Europe's Crisis

By LOUISE STORY, LANDON THOMAS Jr. and NELSON D. SCHWARTZ

Published: February 13, 2010
Wall Street tactics akin to the ones that fostered subprime mortgages in America have worsened the financial crisis shaking Greece and undermining the euro by enabling European governments to hide their mounting debts.

As worries over Greece rattle world markets, records and interviews show that with Wall Street's help, the nation engaged in a decade-long effort to skirt European debt limits. One deal created by Goldman Sachs helped obscure billions in debt from the budget overseers in Brussels.

http://www.nytimes.com/2010/02/14/business/global/14debt.html?partner=rss&emc=rss&_r=0

If the high oil price would benefit enemy Russia, then US has to dig into the foundation of ally's wallet. Last time the ignition was Greece, this time it is Portugal.

 

[pmaitra]

@katsung47,

Out of curiosity, the Euro has the potential of destroying the Dollar. However, there is another contender, the Renminbi.

Russia might as well switch to Euros, and if they do that, it will help Germany the most, hurt the US, and perhaps create a rift between the US and EU. Or would Russia rather buttress the Renminbi? Well, there might be flaws in my understanding. What do you think about this?

 

[katsung47]

As EU joins US to sanction the Russia, Russia turns to Renminbi.

The Nail In The Petrodollar Coffin: Gazprom Begins Accepting Payment For Oil In Ruble, Yuan

Submitted by Tyler Durden on 08/27/2014

Several months ago, when Russia announced the much anticipated "Holy Grail" energy deal with China, some were disappointed that despite this symbolic agreement meant to break the petrodollar's stranglehold on the rest of the world, neither Russia nor China announced payment terms to be in anything but dollars. In doing so they admitted that while both nations are eager to move away from a US Dollar reserve currency, neither is yet able to provide an alternative.

This changed in late June when first Gazprom's CFO announced the gas giant was ready to settle China contracts in Yuan or Rubles, and at the same time the People's Bank of China announced that its Assistant Governor Jin Qi and Russian central bank Deputy Chairman Dmitry Skobelkin held a meeting in which they discussed cooperating on project and trade financing using local currencies. The meeting discussed cooperation in bank card, insurance and financial supervision sectors.

And yet, while both sides declared their operational readiness and eagerness to bypass the dollar entirely, such plans remained purely in the arena of monetary foreplay and the long awaited first shot across the Petrodollar bow was absent.

Until now.

According to Russia's RIA Novosti, citing business daily Kommersant, Gazprom Neft has agreed to export 80,000 tons of oil from Novoportovskoye field in the Arctic; it will accept payment in rubles, and will also deliver oil via the Eastern Siberia-Pacific Ocean pipeline (ESPO), accepting payment in Chinese yuan for the transfers. Meaning Russia will export energy to either Europe or China, and receive payment in either Rubles or Yuan, in effect making the two currencies equivalent as far as the Eurasian axis is conerned, but most importantly, transact completely away from the US dollar thus, finally putin'(sic) in action the move for a Petrodollar-free world.

The Nail In The Petrodollar Coffin: Gazprom Begins Accepting Payment For Oil In Ruble, Yuan | Zero Hedge

 

[katsung47]

10/15/2014

Banned From U.S. Banks, Russian Oil Giant Turns To Even Bigger Banks In China

Russian state owned oil company Gazprom is turning to China for foreign sources of capital now that the U.S. and European financial markets are closed to them.

Beijing is trying to open its capital markets, and lending to foreign institutions is par for the course. Gazprom make for a solid borrower, with tons of collateral in the form of gold"¦black gold that is. For Gazprom, Chinese interest rates aren't as low as what Western banks can offer. But they are still more attractive than Russian banks. China's benchmark interest rate is 6%, while Russia's rate is 8%.

Banned From U.S. Banks, Russian Oil Giant Turns To Even Bigger Banks In China - Forbes

 

[katsung47]

845. Another way to weaken the Euro (7/21/2014)

The energy supply of Europe is heavily dependent on Russia. About one third to 40% of its natural gas and oil are imported from Russia. One important gas pipe is inside Ukraine. If there is a turmoil in Ukraine, the gas supply to Europe will be affected. The economy of Europe would be weakened, so be the Euro. That's why we saw an upheaval in Ukraine.

Ron Paul Defends Russia After Malaysian Plane Crash
.
By Colin Campbell Jul 21, 2014,

One of those unreported things, Paul claimed in his weekly "Texas Straight Talk" column, was the United States' own responsibility for destabilizing the region. Ukraine is currently embroiled in violent conflict between the Ukrainian government and the pro-Russian separatists.

"They will not report that the crisis in Ukraine started late last year, when EU and US-supported protesters plotted the overthrow of the elected Ukrainian president, Viktor Yanukovych.

Without US-sponsored 'regime change,' it is unlikely that hundreds would have been killed in the unrest that followed. Nor would the Malaysian Airlines crash have happened," Paul wrote.

http://finance.yahoo.com/news/ron-paul-defends-russia-malaysian-151731466.html

Here EU used to be a follower of the US. I think the Europeans have sensed the coming danger the US will bring to them. German is a major power of EU. Recently, German has twice revealed two US spy cases and eventually expelled a CIA intelligence official. That's unusual.

Germany Demands Top U.S. Intelligence Officer Be Expelled
Posted 10 July 2014 - 07:36 PM

BERLIN — Germany's relations with the United States plunged to a low point Thursday, with the government demanding the expulsion of the chief American intelligence official stationed here because, it said, Washington has refused to cooperate with German inquiries into United States intelligence activities.

http://www.nytimes.com/2014/07/11/world/europe/germany-expels-top-us-intelligence-officer.html?_r=1

I would say German has sensed (or with its state ability, having the intelligence) that US would sacrifice European's economy by creating a crisis in Europe. It could be terror attack; or war. The deportation of US intelligence official is just a warning or protest of disagreement. Several days later, Malaysia airliner MH17 was down in Ukraine.

846. The divert flight path (7/28/2014)

Evidence shows that MH17 was arranged from its original flight path over to a war zone where it was shot down.

MH17 Verdict: Real Evidence Points to US-Kiev Cover-up of Failed "False Flag"

By 21st Century Wire Global Research, July 25, 2014

MH17: A Doomed Flight Path

A Malaysian Airlines spokesman has already confirmed that, for some unknown reason, Kiev-based Ukrainian Air Traffic Control (ATC) ordered MH17 off of its original flight path along the international air route, known as L980.

Most likely, this order was given to pilots while MH17 was still in Polish air space. L980 is one of the most popular and most congested air routes in the world, as well as a key link between major international hubs in Europe, like London Heathrow, Amsterdam Schiphol, and Frankfurt, and Asian destinations, like Singapore, Mumbai, Hong Kong and Kuala Lumpur.

As MH17 moved into Ukrainian air space, it was moved approximately 300 miles north of its usual route - putting it on a new course, flying directly over a war zone – a dangerous area that's hosted a number of downed military craft over the previous 3 weeks.

MH17 Verdict: Real Evidence Points to US-Kiev Cover-up of Failed “False Flag” | Global Research

Puppet Ukraine censored the air traffic control recordings.

Kiev Censors MH17 Air Traffic Control Recordings
Security services confiscated tapes immediately after incident
by Paul Joseph Watson | July 22, 2014

Why has Kiev failed to release recordings from air traffic control tapes which could prove what happened to Malaysia Airlines Flight 17? Ukrainian security services confiscated the tapes immediately after the incident

» Kiev Censors MH17 Air Traffic Control Recordings Alex Jones' Infowars: There's a war on for your mind!

The case is similar to the shooting down case of "KAL 007" 30 years ago. I talked about it at" 834. Small countries became sacrifice in US plots (5/23/2014)"

In 1983, a South Korea passenger airplane KAL 007 was shot down in Russia.

A few years ago, after former Soviet Union had collapsed, I came across with an analysis of that incident. The article said the Korean pilots couldn't make such a big mistake to diverge the normal flight path. It alleged it was a plot that Pentagon used it to test air defense of Soviet Union. It was cold war time. I believe so. The original path was mostly over the ocean. The deviation track went over Kamchatka Peninsula. That is a big land. Pilots couldn't miss it.

1983: Korean Air Lines Flight 007 Shot Down By Soviet Fighter Plane

1 September 1983: Korean Air Lines Flight 007 Shot Down By Soviet Fighter Plane

 

[katsung47]

845. Another way to weaken the Euro (7/21/2014)

The energy supply of Europe is heavily dependent on Russia. About one third to 40% of its natural gas and oil are imported from Russia. One important gas pipe is inside Ukraine. If there is a turmoil in Ukraine, the gas supply to Europe will be affected. The economy of Europe would be weakened, so be the Euro. That's why we saw an upheaval in Ukraine.

Ron Paul Defends Russia After Malaysian Plane Crash
.
By Colin Campbell Jul 21, 2014,

One of those unreported things, Paul claimed in his weekly "Texas Straight Talk" column, was the United States' own responsibility for destabilizing the region. Ukraine is currently embroiled in violent conflict between the Ukrainian government and the pro-Russian separatists.

"They will not report that the crisis in Ukraine started late last year, when EU and US-supported protesters plotted the overthrow of the elected Ukrainian president, Viktor Yanukovych.

Without US-sponsored 'regime change,' it is unlikely that hundreds would have been killed in the unrest that followed. Nor would the Malaysian Airlines crash have happened," Paul wrote.

http://finance.yahoo.com/news/ron-paul-defends-russia-malaysian-151731466.html

Here EU used to be a follower of the US. I think the Europeans have sensed the coming danger the US will bring to them. German is a major power of EU. Recently, German has twice revealed two US spy cases and eventually expelled a CIA intelligence official. That's unusual.

Germany Demands Top U.S. Intelligence Officer Be Expelled
Posted 10 July 2014 - 07:36 PM

BERLIN — Germany's relations with the United States plunged to a low point Thursday, with the government demanding the expulsion of the chief American intelligence official stationed here because, it said, Washington has refused to cooperate with German inquiries into United States intelligence activities.

http://www.nytimes.com/2014/07/11/world/europe/germany-expels-top-us-intelligence-officer.html?_r=1

I would say German has sensed (or with its state ability, having the intelligence) that US would sacrifice European's economy by creating a crisis in Europe. It could be terror attack; or war. The deportation of US intelligence official is just a warning or protest of disagreement. Several days later, Malaysia airliner MH17 was down in Ukraine.

846. The divert flight path (7/28/2014)

Evidence shows that MH17 was arranged from its original flight path over to a war zone where it was shot down.

MH17 Verdict: Real Evidence Points to US-Kiev Cover-up of Failed "False Flag"

By 21st Century Wire Global Research, July 25, 2014

MH17: A Doomed Flight Path

A Malaysian Airlines spokesman has already confirmed that, for some unknown reason, Kiev-based Ukrainian Air Traffic Control (ATC) ordered MH17 off of its original flight path along the international air route, known as L980.

Most likely, this order was given to pilots while MH17 was still in Polish air space. L980 is one of the most popular and most congested air routes in the world, as well as a key link between major international hubs in Europe, like London Heathrow, Amsterdam Schiphol, and Frankfurt, and Asian destinations, like Singapore, Mumbai, Hong Kong and Kuala Lumpur.

As MH17 moved into Ukrainian air space, it was moved approximately 300 miles north of its usual route - putting it on a new course, flying directly over a war zone – a dangerous area that's hosted a number of downed military craft over the previous 3 weeks.

MH17 Verdict: Real Evidence Points to US-Kiev Cover-up of Failed “False Flag” | Global Research

Puppet Ukraine censored the air traffic control recordings.

Kiev Censors MH17 Air Traffic Control Recordings
Security services confiscated tapes immediately after incident
by Paul Joseph Watson | July 22, 2014

Why has Kiev failed to release recordings from air traffic control tapes which could prove what happened to Malaysia Airlines Flight 17? Ukrainian security services confiscated the tapes immediately after the incident

» Kiev Censors MH17 Air Traffic Control Recordings Alex Jones' Infowars: There's a war on for your mind!

The case is similar to the shooting down case of "KAL 007" 30 years ago. I talked about it at" 834. Small countries became sacrifice in US plots (5/23/2014)"

In 1983, a South Korea passenger airplane KAL 007 was shot down in Russia.

A few years ago, after former Soviet Union had collapsed, I came across with an analysis of that incident. The article said the Korean pilots couldn't make such a big mistake to diverge the normal flight path. It alleged it was a plot that Pentagon used it to test air defense of Soviet Union. It was cold war time. I believe so. The original path was mostly over the ocean. The deviation track went over Kamchatka Peninsula. That is a big land. Pilots couldn't miss it.

1983: Korean Air Lines Flight 007 Shot Down By Soviet Fighter Plane

1 September 1983: Korean Air Lines Flight 007 Shot Down By Soviet Fighter Plane

 

[LETHALFORCE]

Any oil that Russia stops to Europe will be an easy market for us oil exports. Thanks Russia.

 

[sgarg]

Any oil that Russia stops to Europe will be an easy market for us oil exports. Thanks Russia.

Your one-liners are amusing.
The fact is that oil and gas remain key material for economy. Europe cannot live without oil and gas.

US oil is not competitive in Europe.
It is not US but oil from middle-east and central Asia that will reach Europe. However the ability of these Asian countries to bear low prices may be limited, as their economies depend on oil income. You will see production cuts soon.

 

[LETHALFORCE]

Europe will be main market for American oil exports

Exclusive: U.S. opens taps, a bit, on re-exporting oil to Europe | Reuters

 

[asianobserve]

Your one-liners are amusing.
The fact is that oil and gas remain key material for economy. Europe cannot live without oil and gas.

US oil is not competitive in Europe.
It is not US but oil from middle-east and central Asia that will reach Europe. However the ability of these Asian countries to bear low prices may be limited, as their economies depend on oil income. You will see production cuts soon.

Russia is in a difficult dilemma, with oil prices tumbling it needs to increase production to cover the shortfall in revenues due to reduction in prices. However, keeping its current production level also means that the over-supply of oil and gas will continue which will further drive prices down. It's a Catch 22 for Russia. It needs to coordinate with OPEC members and Mexico for a coordinated action on supply reduction. BUt the key here is Saudi Arabia. Will Saudi Arabia roll down production? I suspect it will but only for lip service. The Saudis may be eyeing something different than American frackers by continuing its level of production (which adds to the downward pressure of oil prices).

On a matter in line with the thread, the US Dollar just hit 4-year high while gold prices keep on sliding (they are opposite poles): Gold Prices Weaker as U.S. Dollar Index Hits 4-Year High Overnight - Forbes