Petro $ Kaput ?

[HIPO]

I see the Saudi's are said to be set to drop the U.S. $ when the contract runs out tomorrow. Countries will be able to buy in their own currency , silver, gold etc.

Start of hyperinflation?

[kypez]

If true, I wonder how long before the US says they're a country with WMD and need to be invaded? Like when Iran said they'd sell their oil in any currency other than USD.

[jpd80]

A while back, when OPEC was looking to push up the the price of oil,
Biden sold 100 billion barrels from the US Strategic Reserve, forcing Oil buyers
to take the US oil over OPEC import oil. That created an excess that forced down
the price and then the US started replenishing its reserve stocks at the lower prices.

Not normally a fan of politicians interfering in the free market but in this case,
the US stopped OPEC in its tracks and also made the US treasury a tidy profit.

[Sprintey]

Let Freedom rain from the skies.

Jokes.

Anyway, the US are Saudi now:

https://www.eia.gov/todayinenergy/detail.php?id=61545

Been watching for the demise of the petrodollar for most of my adult life, and it remains the cleanest dirty shirt of the fiat currencies.

[ToryMikey]

Originally Posted by Sprintey

Let Freedom rain from the skies.

Jokes.

Anyway, the US are Saudi now:

https://www.eia.gov/todayinenergy/detail.php?id=61545

Been watching for the demise of the petrodollar for most of my adult life, and it remains the cleanest dirty shirt of the fiat currencies.

Cleaner than our worthless Pacific Peso for sure.

[Sprintey]

Not to mention, what else out there, could replace the volumes of the Eurodollar system? (This is different to the petrodollar). Offshore Yuan? Gold? BTC? SDRs? Rubles lol? If you look at how the Fed's rate cycle has dragged the world with it, there is nothing else out there that could replace it. They are the ones willing to provide the liquidity. My personal preference would be for a free floating gold:silver bimetallic standard based on weight - much closer to the 19th century, but 'It is what it is'.

[HIPO]

Interesting to see how BRICS countries go............

[HIPO]

We know what happens to countries that want to go gold standard.

[whynot]

Originally Posted by HIPO

I see the Saudi's are said to be set to drop the U.S. $ when the contract runs out tomorrow. Countries will be able to buy in their own currency , silver, gold etc.

Start of hyperinflation?

I am struggling to understand what the problem is. Looking at the Light Crude Oil Futures forward curve chart, it is declining in price, with a strong sell flag. Also had a look at oil prices in EU and Singapore gate, same declining price.

Lower oil prices results in lower inflation. It also rolls through to lower gas and coal prices.

July WTI crude oil (CLN24) Friday closed down -0.02 (-0.03%), and July RBOB gasoline (RBN24) closed down -1.49 (-0.62%).

Crude oil and gasoline prices posted modest losses on Friday. Friday's rally in the dollar index DXY to a 1-week high undercut energy prices. Losses in crude were limited on Friday's stronger-than-expected US May payroll report, which is positive for economic growth and energy demand. Crude prices also have carryover support from Thursday when Saudi Arabia Energy Minister Prince Abdulaziz bin Salman said OPEC+ could pause or reverse its decision to boost crude production if prices falter.

Friday's action by the Bundesbank to cut its German 2024 GDP forecast to +0.3% from a previous forecast of +0.4% is negative for energy demand and crude prices.

Oil prices early this week tumbled more than -4% to a 4-month low Tuesday on negative carryover from Sunday when OPEC+ rolled out a plan to restore some crude production in Q4, which sparked worries about a glut in global oil supplies. OPEC+ on Sunday agreed to extend the 2 million bpd of voluntary crude production cuts into Q3 but then gradually phase out the cuts over the following 12 months beginning in October. OPEC pledged to extend its crude production cap at about 39 million bpd to the end of 2025. Also, the UAE was given a 300,000 bpd boost to its production target for 2025.

An increase in crude oil in floating storage is bearish for prices. Monday's weekly data from Vortexa showed that the amount of crude oil held worldwide on tankers that have been stationary for at least a week rose +2.2% w/w to 85.62 million bbl as of May 31.

An increase in OPEC crude output is negative for oil prices. OPEC May crude production rose +60,000 bpd to 26.96 million bpd, a 5-month high.

Crude oil prices have underlying support from concern about the Hamas-Israel conflict. Israel's military is conducting military operations in the southern Gaza city of Rafah despite opposition from the Biden administration. There is also concern that the war might spread to Hezbollah in Lebanon or even to a direct conflict with Iran. Meanwhile, attacks on commercial shipping in the Red Sea by Iran-backed Houthi rebels have forced shippers to divert shipments around the southern tip of Africa instead of going through the Red Sea, disrupting global crude oil supplies.

Higher than-expected Russian crude output is bearish for oil prices. Russian crude processing averaged 5.45 million bpd in the first half of May, up 4% above April's level as refineries recovered from Ukrainian drone strikes. Russia's fuel exports are steady as refineries come back online after being damaged by Ukrainian drone attacks. Russian fuel exports in the week to June 2 were unchanged from the prior week at 3.22 million bpd.

Wednesday's EIA report showed that (1) US crude oil inventories as of May 31 were -3.9% below the seasonal 5-year average, (2) gasoline inventories were -0.7% below the seasonal 5-year average, and (3) distillate inventories were -6.8% below the 5-year seasonal average. US crude oil production in the week ending May 31 was unchanged w/w at 13.1 million bpd, slightly below the recent record high of 13.3 million bpd.

Baker Hughes reported Friday that active US oil rigs in the week ended June 7 fell -4 rigs to a 2-1/4 year low of 492 rigs. The number of US oil rigs has fallen over the past year from the 4-year high of 627 rigs posted in December 2022.

[Syndrome]

Gaddafi proposed something similar and see what happened to him!

[Franco Cozzo]

Originally Posted by Syndrome

Gaddafi proposed something similar and see what happened to him!

Saddam Hussein and selling oil in Euros

Who do you reckon is going to be the next crown prince of Saudi Arabia? I checked Sportsbet but they're not offering wagering on American led coups on middle eastern leaders.

Mohammed bin Salman's days are numbered if he goes down this path,

The US tolerates Saudi Arabia because they play the game, they sell the west and others oil in USD, they buy US/UK weapon systems - go look at their military and the equipment they operate.

In exchange, they're allowed to keep their 'kingdom' and we tolerate their war on Yemen that's killed 500,000 people (strangely the Melbourne protesters don't know about that one)

I'd say MBS and the Saudi leadership are sitting down and going to stick to the status quo.

[Sprintey]

Gaddafi was supporting a pan-African gold backed dinar.

[Dr Smith]

So...for my accounts....should I now be paying around $1.75/L for diesel....or is that in-grown toe-nail of the security guard at the terminal gate for the country we lock our wholesale price to going to be blamed for the continued higher price when all factors show it should have dropped....

[GASWAGON]

Is this why 91 has jumped back to $2.30 overnight???

Its bloody outrageous!

[HIPO]

We're in good hands with that highly respected ACCC on the job!

[Syndrome]

Originally Posted by HIPO

We're in good hands with that highly respected ACCC on the job!

And the FIRB

[HIPO]

Originally Posted by Syndrome

And the FIRB

Unaware, will check!

[PooDog]

Originally Posted by whynot

I am struggling to understand what the problem is. Looking at the Light Crude Oil Futures forward curve chart, it is declining in price, with a strong sell flag. Also had a look at oil prices in EU and Singapore gate, same declining price.

Lower oil prices results in lower inflation. It also rolls through to lower gas and coal prices.

Or maybe it's just seasonal , Europe's heading into summer .....maybe it's just off peak for supply

Situation normal ?