Nov 182007

The days of the “Petrodollar” might be counted and that could mean even more trouble for the US dollar,  the United States of America and world economy.

Venezuela and Iran wanted the final statement to express concerns over the weakness of the US dollar.  According to Al Jazeera Saud al-Faisal, the Saudi foreign minister, told the session: “My fear is that any mention that Opec makes of studying the issue of the dollar will in itself have an impact.”

This gives some indication how severe such actions could be and therefore what precautions the US might take. There will be further talks of the finance ministers of the OPEC countries about the dollar weakness.

It is not wide-known that Saddam Hussein started to sell oil in Euro instead of US dollar in 2000. There are good arguements that this was the real reason to invade Iraq. (See Petrodollar Warfare).

And what about Iran? “OPEC’s second-biggest producer Iran has shifted much of the payment received for its oil into other currencies.”mentions Guardian Unlimited in an article about the OPEC summit.