OPEC’s Secretary-General, Abdullah al-Badri, told the Middle East Economic Digest, there is a strong possibility the price of oil will switch from being pegged with dollars to the euro being the hallmark of how oil prices are determined. “Maybe we can price the oil in the euro. It can be done, but it will take time.” He admitted OPEC was under great pressure from nations like Venezuela to make the switch since the decline of the dollar is impacting their wealth. “In oil exchanges in New York, Singapore or Dubai, you can see the currency is the euro or the yen,” he said.
It took two world wars and about fifty years to enshrine the dollar as the method of pricing the price of oil. The value of the dollar has declined 44% against the euro within a decade, and this concerns oil producers. They hesitate at this point to make switch due to fear a drop in the price of the dollar would impact their trillions invested in the United States.
George Bush ran his campaigns claiming Republicans were the party fo fiscal responsibility. It is during his watch that the dollar has declined so precipitously. So much for another Bush claim to fame.