Iran to stop pricing oil in U.S. dollar

[Sapiens]

Re: Iran to stop pricing oil in U.S. dollar

[Tet]

Re: Iran to stop pricing oil in U.S. dollar

John McCain is doing everything humanely possible to be able to take his presidential campaign war-chest filled with all sorts of ill gotten gains and go home, drop out of the race and have that war-chest and it's millions to spend on himself. The sooner the better as far as he's concerned because campaigning is expensive. McCain is where he always is, on the outside looking in he's not a part of the club, he's got absolutely no chance and the worse thing that can possibly happen is he has to spend more of his ill gotten gains on a completely pointless presidential campaign and not himself.

This is a great move on his part, because that without question this is the stupidest thing I've ever heard since his other Arizona compatriot stated we should bomb them back into the stoneage. McCain more than anyone knows how that turned out for Barry.

[Finster]

Re: Non-Issue

I thought my response to this agreed with you that Iran's 3 million barrels per day doesn't have much impact if any, as long as the oil is still sold through Wall Street or London, which it is. It's priced in d0llars now. If Iran sells this oil contract by contract, in multiple currencies or barter that's a big problem. About $190 million in d0llar demand per day gone, just from the crude, not counting the d0llar demand that disappears from other commodities, plus more importantly Wall Street doesn't get their 10% cut, plus the money they make on the float from shipment to delivery. You take Wall Streets 10% cut out of the equation and Iran could discount the price and still make more and Wall Street isn't going to allow that to happen. Every March and April the press or internet brings out these Iran sells oil in Euros or Iran starts their own oil bourse stories. This has been going on for the last three or four years now.

Actually I think three million barrels of oil a day is fairly significant. If Iran were to withhold the oil, or even worse, cut off shipping through the Strait of Hormuz, it would be very significant. It would also be fairly significant if Iran sold the oil but did not accumulate dollars as a result. What is not significant is what currency Iran happens to conduct the initial oil transaction in.

[Finster]

Re: Iran to stop pricing oil in U.S. dollar

from what i've read, the fact that oil is sold in dollars forces oil purchasers to maintain some dollar balances that would otherwise not be required. i don't recall the estimated totals, but i do recall that i was not impressed by their size. still, it does add some marginal demand for the dollar.

Nice to see someone posting a sober line of reasoning in this thread. I was beginning to wonder if the old iTulip had disappeared and been surreptitiously replaced by one dominated by theatrics and sensationalism.

Indeed, there is some marginal demand for dollars attendant to conducting primary oil sales in dollars. While I don’t happen to have the actual figures handy, your assessment sounds reasonable. In light of the facts, my claim that it is "largely irrelevant" whether the initial transaction takes place in dollars or another currency seems secure.

[lobodelmar]

Re: Iran to stop pricing oil in U.S. dollar

I think I have to agree with Finster on this one...if Iran started requiring everyone to pay for Iranian oil in Zagnuts that would still have all of the same ramifications on the bonar as he was mentioning above. If Iran withholds 3mm BBL, of course that will have an impact on oil prices and on the bonar. And on trade policy and military policy and wall street. But they can't withhold oil just from the US...once it is on a market somewhere, oil is oil is oil...

[Tet]

Re: Iran to stop pricing oil in U.S. dollar

While I don’t happen to have the actual figures handy,

LMAO. you guys love to dance and sing don't you? Oil is really nothing and everyone holds d0llars because they love us. You getting a check to say this or is this really your own view on the subject?

[jk]

Re: Iran to stop pricing oil in U.S. dollar

the price of oil is enormously important, whatever the means of exchange in which it expressed. lowering the price of oil to $10/barrel had a lot to do with the fate of the soviet union. the saudies major weapon against the iranians is the money they have flowing in and their [supposed] ability to ramp up production further and undercut the oil price in order to constrict iranian options. iran is very dependent on high oil prices since it heavily subsidizes its domestic energy consumption and in fact imports almost half its gasoline [for lack of local refining capacity]. capturing british soldiers goosed the price- score one for the iranians. pricing their oil in other currencies puts a thumb in uncle sam's eye but is more symbolic than substantive in my opinion. the fact is that the total capitalization of european markets [if you include russia] now exceeds that of the u.s. europe is also likely to grow faster than the u.s. in the next 4 quarters. china has twice as many submarines [albeit deisel, but effective] as the u.s. and, general, the unipolar world of the one hyperpower is on the fade.

[Finster]

Re: Iran to stop pricing oil in U.S. dollar

Oil is really nothing and everyone holds d0llars because they love us.

I disagree. Oil is extremely important. Dollars are intrinsically valueless. People don't hold them because they love us, either. Rather, because they're trying to keep their market value high as they can long as they can in order to keep their own currencies from rising and making their exports less competitive.

[Sapiens]

Bush raises possibility of talks with Iran

http://www.telegraph.co.uk/news/main...5/wiran125.xml

Bush raises possibility of talks with Iran
By Alex Spillius in Washington
Last Updated: 8:59pm BST 25/04/2007


President George W. Bush said Condoleezza Rice, the Secretary of State, could hold informal talks with Iranian leaders at an international conference on Iraq next week, signalling a significant shift in the US administration’s stance towards the Islamic republic.

In a television interview, Mr Bush said Miss Rice could meet her Iranian counterpart on the sidelines of the conference being held in Egypt.

Earlier this week Miss Rice said that if Manouchehr Mottaki did not attend the meeting in Sharm el-Sheik it would be a “missed opportunity” and emphasized that America’s aim in Iran was not regime change but a “change in the regime”.

Mr Bush told the PBS network on Tuesday night that if a meeting did occur, Miss Rice’s message to the Iranians would be: “Don’t send weapons in [to Iraq] that will end up hurting our troops, and help this young democracy survive.”

He said that it was too early for formal bilateral talks between the two countries, which have been at hostile odds since 1979, when revolutionary students stormed the American embassy in Teheran and Washington cut diplomatic ties.

Mmmm, I guess the Dems got their message across...or... those that put Gonzo and Wolf under fire.

[toddpw]

Re: Iran to stop pricing oil in U.S. dollar

Finster, I agree with jk that it is about marginal demand of dollars for currency reserves in central banks around the world. If Iran establishes its own oil bourse as they are trying to do, it would not just cut out our middlemen, but it would trigger yet more dumping of dollar reserves around the world. That's got to push the currency value down even more.

[Sapiens]

Senate votes to require Iraq withdrawals

http://news.yahoo.com/s/ap/20070426/ap_on_go_co/us_iraq

By ANNE FLAHERTY, Associated Press Writer
10 minutes ago



WASHINGTON - A defiant Democratic-controlled Senate passed legislation Thursday that would require the start of troop withdrawals from Iraq by Oct. 1, propelling Congress toward a historic veto showdown with President Bush on the war.

Ah, war plans may be delayed.....

[Sapiens]

U.S. implicates Iran in January attack

U.S. implicates Iran in January attack
http://news.yahoo.com/s/ap/20070703/...q_070629184802

By LEE KEATH, Associated Press Writer
2 hours, 5 minutes ago



BAGHDAD - The U.S. military accused Iran on Monday of a direct role in a sophisticated militant attack that killed five American troops in Iraq, portraying Tehran as waging a proxy war through Shiite extremists.

The claims over the January attack marked a sharp escalation in U.S. accusations that Iran has been arming and financing Iraqi militants, and for the first time linked the Iranian effort to its ally, Lebanon's Shiite Hezbollah militia. The allegations could endanger Iraqi efforts to hold a new round of talks between the U.S. and Iran.

We may be getting back on schedule now that Wolfowitz's problems are taken care of and Gonzo is laying low.

http://news.yahoo.com/s/ap/20070702/.../wolfowitz_aei
Wolfowitz moves to DC think tank By JEANNINE AVERSA, AP Economics Writer
Mon Jul 2, 7:50 PM ET

WASHINGTON - Former World Bank chief Paul Wolfowitz, who resigned amid a furor over his handling of a bank pay package for his girlfriend, has joined the American Enterprise Institute, a think tank, as a visiting scholar.

...

AEI's stated mission is to "defend the principles and improve the institutions of American freedom and democratic capitalism." The nonprofit institution, founded in 1943, is oriented to research and education on range of government, political, economic and social issues.

And Scooter out of Jail:

http://news.yahoo.com/s/ap/20070703/...cia_leak_trial

Bush commutes Libby prison sentence By BEN FELLER, Associated Press Writer
1 minute ago

WASHINGTON - President Bush spared former White House aide I. Lewis "Scooter" Libby from a 2 1/2-year prison term in the CIA leak investigation Monday, delivering a political thunderbolt in the highly charged criminal case. Bush said the sentence was just too harsh.

[Jim Nickerson]

Re: U.S. implicates Iran in January attack

U.S. implicates Iran in January attack

http://news.yahoo.com/s/ap/20070703/ap_on_re_mi_ea/iraq



We may be getting back on schedule now that Wolfowitz's problems are taken care of and Gonzo is laying low.



And Scooter out of Jail:

I agree with Bush on this one, in my opinion to be a lawyer means to be a liar. It would be an unprecedented precedent by the president to begin to allow lawyers to be put in jail for lying, shit!, they would have to pardon all those convictions associated with drugs to make space for the lawyers.

My personal favorite oxymoron: an honest lawyer.

[Guest]

Re: Iran to stop pricing oil in U.S. dollar

FROM STRATFOR (on US - Iran compromise over Iraq) :

< < Once you throw the spoilers into this equation, along with a centuries-old Arab-Persian rivalry centered on containing the very rise that Iran is anticipating this deal will yield, the prospect of a U.S.-Iranian accommodation over Iraq coming to fruition does not look so good. >>

US / IRAN / IRAQ - ARTICLE HERE:

https://www.stratfor.com/products/pr....php?id=289387

[Darin]

Re: U.S. implicates Iran in January attack

*** MAJOR TYPO ***
Main page says June 3, 2007 for U.S. Today is July 3rd