Crude priced in Eurodollars? - Discuss

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billpritjr

I would like to get some discussion going into why Crude priced in Euros, instead of the current US Dollar, is "bad" for the US Economy.

Discuss
 
first it would be a sign that the US are losing their leading position (USD being the reference until now) and it would be only the beginning.
secondly if the price of oil goes up in euros and that the dollar continues to stumble, it will be harder and harder for americans to buy oil.
what do you think ?
 
Crude priced in Eurodollars?:confused:

It's either euros or dollars, you can't price in eurodollars as those are just dollars.
 
No worries. I think it would be a major blow to the US and it would definitely undermine the US' position in the world economy.
 
There could come about a scenario whereby Germany would want to restore the deutschmark currency because they believe that they're primarily responsible for the strength of the euro and resent subsidizing the "lesser" European countries that also use the euro eventually leading to a splintering of the EEU.
 
Quote from billpritjr:

I would like to get some discussion going into why Crude priced in Euros, instead of the current US Dollar, is "bad" for the US Economy.

Discuss
More...

It's pretty simple. If all the dollars circulating outside the US (billions of petrodollars) can no longer be converted to oil (e.g. the selling country wants Euros, say) then those dollars will all end up back where they can be exchanged for something useful: the USA. Could be inflationary to have such a sudden increase in the money supply, dontcha think?

And why on earth should anyone outside the US have to pay USD for oil? By what right does the US retain such monetary hegemony? Who benefits?
Who will say fxxx that?

Best secure your oil supply fast. Oh, you're on it already...
 
Really the betting against the dollar is a sign of very stable times.

With the US military hands on in the Persian gulf it guarantees open shipping routes and allows risk taking in other currencies.

Once an "incident" happens they will be begging for dollars and US assets (flight to quality).

Since 9/11 tensions have eased due to the US leading the way to ensure safe shipment of raw and finished goods.

It helps that the Chinese has been pragmatic in securing the raw materials it needs to manufacture for the world. China has promoted stability(pro US or anti-US) for commerce reasons.
 
Quote from nazzdack:

There could come about a scenario whereby Germany would want to restore the deutschmark currency because they believe that they're primarily responsible for the strength of the euro and resent subsidizing the "lesser" European countries that also use the euro eventually leading to a splintering of the EEU.
More...

I still like good old Deutsch Mark ! :p
 
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