Petroeuro

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The Euro

A petroeuro is a petroleum trade valued on the euro as opposed to the US dollar (a petrodollar). Trading of any natural resource, including petroleum, is controlled through trading partnerships involving both exporters and importers of the resource, in a defined marketplace, and through a trade agreement. The major countries holding petroleum reserves since the decline of US production are dominated by OPEC, and hence, OPEC may choose dollars, euros, yen, or any currency providing perceived advantage, politically or economically. As of 2005, OPEC continues to trade in petrodollars, but some OPEC members (such as Iran and Venezuela) have been pushing for a switch to the euro.

On March 20, 2006, Iran is planning to open an International Oil Bourse (IOB, exchange) for the express purpose of trading oil priced in other currencies, including Euros. This will establish a Euro based pricing mechanism, or 'oil marker' as it is called by traders. The three current oil markers are US dollar denominated, which include the West Texas Intermediate crude (WTI), Norway Brent Crude, and the UAE Dubai Crude. In 2003, Iran started trading with its European and Asian partners using the Euro. The Iranian Oil Bourse, however, will also establish a fourth 'oil marker', dominated by the Euro.

US FED discontinues reporting M3 data

M3 from 1995-2005

On March 23, 2006 the United States Federal Reserve (the Fed) stopped reporting the M3 money supply data of the US dollar. This has started some speculation in the investment and banking community on the possible instability in the dollar system that the Fed is trying to hide. (The Federal Reserve is a system of eight to twelve regional reserve banks, owned by its commercial member banks and supervised by the Federal Reserve Board.)

The Fed offers this brief note:

Discontinuance of M3

On March 23, 2006, the Board of Governors of the Federal Reserve System will cease publication of the M3 monetary aggregate. The Board will also cease publishing the following components: large-denomination time deposits, repurchase agreements (RPs), and Eurodollars. The Board will continue to publish institutional money market mutual funds as a memorandum item in this release.

Measures of large-denomination time deposits will continue to be published by the Board in the Flow of Funds Accounts (Z.1 release) on a quarterly basis and in the H.8 release on a weekly basis (for commercial banks).

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M3 from 1959-2005

The M3 money supply has been reported since 1959.

External links

• The Fed Announces it Will Hide M-3 To Keep You From Knowing What? by Robert McHugh 12.11.2005
• Discussion of M3 on peak oil messageboard
• The Real Reasons Why Iran is the Next Target: The Emerging Euro-denominated International Oil Marker
• Petrodollar Warfare : Oil, Iraq and the Future of the Dollar
• The Iranian line in the sand
• Petrodollar Warfare: Dollars, Euros and the Upcoming Iranian Oil Bourse

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Correlation of Stockmarket and M3 growth

• Petrodollar or Petroeuro? A new source of global conflict
• The Iranian Threat: The Bomb or the Euro?
• U.S. Dollar vs. the Euro: Another Reason for the Invasion of Iraq
• Will the Iranian Oil Bourse Threaten the Dollar?
• The Real Reasons Why Iran is the Next Target
• Will Iran’s oil kill the U.S. dollar?
• The Proposed Iranian Oil Bourse (a point)
• Strange ideas about the Iranian oil bourse (a counterpoint with countercounterpoints in comments...)
• The Proposed Iranian Oil Bourse (Abstract: The proposed Iranian Oil Bourse will accelerate the fall of the American Empire.)
• Trading oil in euros – does it matter?
• M3, We Hardly Knew You
• Fed Abandons M3 Without An Honest Explanation
• NY Post: What's the Fed up to mirror of the story removed from NYP
• What's Happened To M3? by David Chapman
• M3 becomes a liability for the Fed

See also

• Bush Doctrine
• Petrodollar warfare