Oil's energy contribution has declined by about 12% since 1999. The world's economies have also declined by about 12%. (Using conventional metrics, which are time delayed determinations, this will only be seen in hind sight). The massive destruction of asset values now occurring testifies to it happening.
Peak is well behind us, world economies have peaked and will continue to decline.
Joined: Mar 18, 2006 Posts: 1264 Location: Off with the Fey Folk
Posted: Fri Jun 09, 2006 12:53 pm Post subject: Re: Russia Bourse Begins Trading Urals Oil
snowhope wrote:
Traditionally / historically I agree JPL and you make very good points. But we are in a fast changing geo-political world - who would have though even 5 years ago that countries such as Iran, Russia, and increasingly some West African countries would gain the power and influence they have now?
I presume until relatively recently the US$ would have been considered a stable currency and the Euro didn't emerge until 5 years ago! What currencies were stable in the recent past and are stable now has and is changing rapidly.
Putin is a clever man and I think they are planning long term - the axis of power is changing as we watch. Chindia have yet to play there hands and of course and the Iranians keep threating a Euro bourse. All of the above is a threat to the US$ and I can only see it going one way unfortunately. The question for me is how fast and deep will the crash be..... no wonder gold is popular.
Hi
I agree times are changing but people tend to plan for the last crisis rather than the next one ;o)
My main point being that if my previous boss had caught me trying to swing a big deal in Rubles my ass would have been fried...
Posted: Wed Aug 27, 2008 4:21 pm Post subject: Re: Russia Bourse Begins Trading Urals Oil
Petrodollar wrote:
For example, in 2007 China will likely be able to buy Venezuelan-sourced oil via the euro-based Iranian oil bourse and conduct those transactions in euros.
can you please get into a little bit more detail with this example?
here is my understanding of how it works, based on your explanation and some other internet based sources.
1."Persian Gulf blend" is the benchmark traded on IOB
2.differential between Venezuelan-sourced oil and the benchmark is also traded on IOB, other participating suppliers, e.g, Urals, have their own differential listed as well.
3.in order to get delivery of Venezuelan-sourced oil, China has to hold contracts of both the benchmark and the differential.
4.arbitrage by the refineries will keep the differentials reasonably priced.
One particular question I have is, can Russia sell their oil production on NYMEX in WTI and deliver in Urals?
Joined: Mar 18, 2006 Posts: 1264 Location: Off with the Fey Folk
Posted: Thu Aug 28, 2008 4:19 pm Post subject: Re: Russia Bourse Begins Trading Urals Oil
gmin wrote:
Petrodollar wrote:
For example, in 2007 China will likely be able to buy Venezuelan-sourced oil via the euro-based Iranian oil bourse and conduct those transactions in euros.
can you please get into a little bit more detail with this example?
here is my understanding of how it works, based on your explanation and some other internet based sources.
1."Persian Gulf blend" is the benchmark traded on IOB
2.differential between Venezuelan-sourced oil and the benchmark is also traded on IOB, other participating suppliers, e.g, Urals, have their own differential listed as well.
3.in order to get delivery of Venezuelan-sourced oil, China has to hold contracts of both the benchmark and the differential.
4.arbitrage by the refineries will keep the differentials reasonably priced.
One particular question I have is, can Russia sell their oil production on NYMEX in WTI and deliver in Urals?
Oh wonderful, I too welcome our new russian dis-information overlords friends.
BTW bud this is a 2-year old thread. Just a tip (grin).
JP _________________ I see a dark sail on the horizon
set under a black cloud that hides the sun.
Bring me my broadsword and clear understanding.
Bring me my cross of gold as a talisman.
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