Re: Putin: Russia to price oil in Euros

[Paul Cockshott <clyder@xxxxxxxxxx>]

David Schanoes wrote:
>
> Before we get too carried away with scenarios of the Revenge of the
> Euro, let's consider the impact such a move will have on the oil
> importing countries, particularly those countries of the deveoping
> world, like Argentina, unless it negotiates a favorable contact with a
> producer, a la certain Central American countries with
> Mexico/Venezuela:
>
> 1.  The immediate impact will be a immediate increase in oil costs,
> draining more resources away from these areas and to..... the oil
> companies themselves-- ExxonMobil, BP/Amoco, Chevron/Texaco, Yukos,
> ConocoPhillips, Elf, Fina, etc.

>From this premis the rest of your argument follows.
Why should switching from one currency to another affect
the real value of oil?

Its impact would mainly be on the relative prices of the euro
versus the dollar. The pair of currencies (euro,dollar) should
remain at the same relative parity with other currencies. Thus
third parties should not see a significant change in the price of oil.

>


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