Monday, November 19, 2007

OPEC looking at how weak dollar affects the cartel's profits

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Well, this bit of news will probably leave some people feeling shaken, not stirred. OPEC has announced that the group has set up a committee to look into how the weak U.S. dollar is affecting the cartel's earnings and to figure out if trading oil using a "currency basket" (a concept I just learned about) would be beneficial to OPEC. The committee will report on whether using the average value of a group of currencies (the basket) would be better than trading oil using dollars; details on which currencies might make it into the basket and when the report is due have not been announced. According to the AP, the two countries that have pushed the hardest for this move are Iran and Venezuela. Saudi Arabia is against it. For it's part, the U.S. is calling on the cartel to increase oil production. Apparently, to understand global politics in a nutshell, just look at OPEC.

[Source: AP]

 

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