Russia Finance Minister: We May Abandon Dollar In Oil Trade As It Is Becoming “Too Risky”

Breaking the tie between oil and the U.S. Dollar means the collapse of the U.S. Dollar as the world reserve country. Collapsing of the U.S. Dollar as world reserve currency means the collapse of America. Ghadaffi attempted it, as well as Saddam Hussein and look how that worked out for them. Iran, Syria, China, Russia all want to. Economic warfare always precedes a hot war, in case you were wondering what’s around the corner.

 

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One month ago, the bond market and political pundits did a double take when according to the latest Treasury International Capital report, Russia had liquidated virtually all of its US Treasury holdings, selling off the bulk of its US government bonds in just two months, March and April.

And with the US threatening to impose a new set of “crushing” sanctions on Russia, including in retaliation for the alleged Novichok nerve gas attack in the UK, Russia not only intends to continue liquidating its US holdings, but to significantly reduce its reliance on the US Dollar. Continue reading

OPEC Has Regained Its Grip On Oil Markets

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Higher oil prices seem to have given OPEC the confidence that it needs to begin thinking about moving forward, and with Russia in the mix as well, it appears as though the alliance will be a force to be reckoned with.

– Gasoline prices averaged $2.92 per gallon for the week ending on May 21, and have surpassed $3 per gallon in regional markets.

– The prices are the highest for the Memorial Day weekend in four years.

– However, prices are likely to fall back soon with crude oil prices plunging over the past week. Continue reading

Is A Russian-Iranian Energy Pact In The Making?

Oil Rigs

 

In the lead-up to President Rouhani’s visit to Moscow, expected to take place in late March, a plethora of news regarding joint Russo-Iranian energy projects has been circulating on the Internet. A three-year long negotiation process regarding a 100,000 barrels-per-day swap contract is believed to be agreed upon, premised on Iran providing Russia (most likely, Rosneft) oil from Kharg Island or other hubs in the Persian Gulf in return for cash and Russian goods that Iran would “require”. Teheran also woos LUKOIL, currently Russia’s only major oil producer in the Caspian, to participate in swap deals bound for Iran’s Neka Port (in return for Iranian crude provided from Kharg Island or other Persian Gulf hubs), albeit on a much smaller scale at 4000 to 5000 barrels per day. To top it all up, numerous Russian oil companies have committed themselves to developing Iran’s hydrocarbon fields. Continue reading

Exclusive: Iran wants euro payment for new and outstanding oil sales – source

 

 

Iran wants to recover tens of billions of dollars it is owed by India and other buyers of its oil in euros and is billing new crude sales in euros, too, looking to reduce its dependence on the U.S. dollar following last month’s sanctions relief.

A source at state-owned National Iranian Oil Co (NIOC) told Reuters that Iran will charge in euros for its recently signed oil contracts with firms including French oil and gas major Total, Spanish refiner Cepsa and Litasco, the trading arm of Russia’s Lukoil. Continue reading

Turkish warship monitors Cyprus gas exploration

…and now we have factual proof as to why a German-led European Union had pushed Russia out of Cyprus and raided the cash vaults. It had nothing to do with corrupt Russian bankers, businessmen or shady politics. The hit was motivated by solidifying Europe’s future energy independence and positioning EU as a future world superpower. In previous posts, it was also mentioned that Greece would be the future corridor for forwarding energy from the Mediterranean, Middle East and northern African nations. Don’t count the ‘broke’ nation out of the game.

 

Turkey has sent a warship to the island of Cyprus to monitor a drillship that has been sent to search for natural gas reserves off the island’s coast.

Italian-Korean consortium ENI/KOGAS has sent the Bahamas flag-carrier Saipem 10000 drillship to the “Onasagoras” gas field in Block 9 of the island’s Exclusive Economic Zone (EEZ) on Tuesday.

In response, the Turkish navy has sent its Bafra Korveti warship to observe the drillship’s activities.

Greek Cypriot Foreign Minister Ioannis Kasoulides said on Wednesday that hydrocarbon exploration in the region will continue despite Turkey’s objections, calling Turkey’s actions ‘potential harassment’.

Continue reading

UPDATE 1-Total CEO calls for bigger euro role in oil payments

(Reuters) – Oil major Total’s chief executive said on Saturday the euro should have a bigger role in international trade although it was not possible to do without the U.S. dollar. Continue reading

France hits out at dollar dominance in international transactions

France’s political and business establishment has hit out against the hegemony of the dollar in international transactions after U.S. authorities fined BNP Paribas $9 billion for helping countries avoid sanctions.

Michel Sapin, the French finance minister, called for a “rebalancing” of the currencies used for global payments, saying the BNP Paribas case should “make us realize the necessity of using a variety of currencies”.

He said, in an interview with the Financial Times on the sidelines of a weekend economics conference: “We [Europeans] are selling to ourselves in dollars, for instance when we sell planes. Is that necessary? I don’t think so. I think a rebalancing is possible and necessary, not just regarding the euro but also for the big currencies of the emerging countries, which account for more and more of global trade.”

Christophe de Margerie, the chief executive of Total, France’s biggest company by market capitalization, said he saw no reason for oil purchases to be made in dollars, even if the benchmark price in dollars was likely to remain. Continue reading

Brazil finds bumpy path on way to becoming world oil power

Brazil’s efforts to become one of the world’s major oil producers have attracted businesses such as U.S. drilling giants Halliburton and Baker Hughes, gained it partnerships with oil companies from India and China, lured immigrants from idyllic Norway and drawn investment dollars from American pension funds in Florida, South Carolina and California.

But the prospects for success have darkened in the seven years since Brazil first identified massive oil deposits in deep water off its coast. Many fear that Brazil’s chance to become one of the world’s major energy producers is fading as the global energy landscape changes dramatically. Continue reading

Commodities: Iran challenges US sanctions with plans to double oil output by 2018

As already mentioned here a few times, third world countries have no bottom, thus making any sanctions against Iran’s oil industry worthless. The world has a high demand for oil and all sanctions will do is force the oil route to change direction towards another country.

Iran has unveiled plans to double its oil production by the end of the decade and, ignoring sanctions, pump billions of dollars of its currency reserves into developing its share of the world’s largest natural gas reservoir in the Persian Gulf.

The country’s new oil minister, Bijan Zanganeh, has set a new output target of 5.7m barrels per day (bpd) of crude by 2018, according to the official state-run news agency Shana. The latest figures produced by the Organisation of Petroleum Exporting Countries (Opec), show that Iran is currently pumping about 3m bpd of crude.

Tehran is also sending strong signals to the international community that it plans to press ahead with the development of vast natural gas reserves that it shares with Qatar in the Persian Gulf. Moshtaq Ali-Gohari, head of the National Iranian Oil Company, told Shana over the weekend that the Islamic republic plans to invest almost $14bn (£8.3bn) to develop oil and gas fields that it shares with neighbours in the region. This could signal that Tehran is preparing for the further development of the South Pars field in the Gulf. Continue reading

Cyprus signs LNG deal with US-Israeli partnership

As was predicted in a previous post, is being done. A ‘United States of Europe’ is slowly but surely being formed.

Cyprus inked a deal with a US-Israeli partnership on Wednesday to build a liquefied natural gas plant on the island to exploit untapped energy riches.

A memorandum of understanding was signed between Cyprus and a partnership comprising US-based Noble Energy International and Israeli companies Delek Drilling and Avner Oil Exploration to build a LNG facility at Vassiliko near the southern resort town of Limassol.

“The signing … represents the next milestone on the road map for the exploitation of gas reserves in Cyprus’ Exclusive Economic Zone,” said Cyprus Energy and Commerce Minister George Lakkotrypis at the official ceremony. Continue reading

Oil industry sees China winning, West losing from Iran sanctions

Russia is also who will precisely benefit from an actual war on Iran. Not only through weapons and technology sales in the prelude to war, but through the oil and gas trade. Thus, it is also in Russia’s interests to escalate tensions with their middle east proxies against the west.

(Reuters) – As the European Union prepares to ban Iranian oil and the United States turns the screw on payments, oil executives and policymakers say China and Russia stand to gain the most and Western oil firms and consumers may emerge the biggest losers.

Iran will continue to sell much the same volume of oil – 2.6 million barrels per day or around 3 percent of world supply – but almost all of it will flow to China, they reason. And being pretty much Iran’s only remaining customer, Beijing will be able to negotiate a much reduced price.

The EU will ban Iranian oil from July. The United States plans sanctions on Iran’s central bank and possibly its shipping firm. European headquartered oil firms such as France’s Total and Royal Dutch Shell have already abandoned Iranian oil purchases or are in the process of doing so.

Continue reading article: Oil industry sees China winning, West losing from Iran sanctions (Reuters)