Ivo Cerckel

David Woo Defends the Oil Price Denomination Fallacy

“Is this commitment to the dollar peg a good or bad decision, keeping in mind the increased revenue from higher energy prices for the region?”, Gulf News asked its readers earlier this week. (5)

The problem is that we don’t know in what currency oil is being traded. We don’t know the currency in which oil contracts say they should be settled.

The reason is that the Gulf rulers agreed at the GCC Summit to KEEP any currency reform talks SECRET to calm markets. (6)

Iran, which was invited at the GCC Summit, is said to obtain already 85% of its oil revenues in euro. (7)

The Iranian Oil Bourse (IOB) which would sell oil in non-dollar currencies, mainly the euro, was supposed to have opened in March 2006, among other dates.

Wikipedia says the IOB has not yet opened. (8)

Alex Lantier said earlier this week that the IOB had opened in March 2006 which explains why the dollar is collapsing. (9)

On 30 November 2007, I wrote on my blog
blogs.siliconindia.com...
under "Exit doors to rupee appreciation"
that Iranian President Ahmadinejad had proposed the
creation of an Oil Bourse by OPEC at the OPEC Summit in Riyadh on November !7 and 18 2007. (10)

This OPEC Bourse should not to be confused with the OPEC Bank.

Whether the OPEC Oil Bourse should be confused with the Iranian Oil Bourse, I don’t know.