China shifts to euros for Iran oil

[Jcrowley]

Source: The Scotsman

China shifts to euros for Iran oil
By Chen Aizhu

BEIJING (Reuters) - China's state-run Zhuhai Zhenrong Corp, the biggest buyer of Iranian crude worldwide, began paying for its oil in euros late last year as Tehran moves to diversify its foreign reserves away from U.S. dollars.


The Chinese firm, which buys more than a tenth of exports from the world's fourth-largest crude producer, has changed the payment currency for the bulk of its roughly 240,000 barrels per day (bpd) contract, Beijing-based sources said.

<snip>

Iranian officials have said for months that more than half the OPEC member's customers switched their payment currency away from the dollar as Tehran seeks to diversify its reserves, but news of the Zhenrong change is the first outside confirmation.

<snip>

CHINA SWITCHES EARLY

"Most of China's purchases have shifted to euro. It's not difficult so long as our banks can handle that," said a Chinese state oil trader.

Read more: http://business.scotsman.com/latest.cfm?id=474362007

[Dyedinthewoolliberal]

1. Now this is going to cause some concern....

eom

[tblue]

15. What's so sad is this was completely avoidable,

but all that matters anymore is Petrodollars, etc.

[mediaman007]

2. Ah yes! We must attack now...

This is a lot more important to us that any Iranian nukes.

[Vincardog]

3. Ho w long do you think it will be until the free traders get their wish and the Chinese float their

yuan vs the $?

[soothsayer]

5. chinese yuan, japanese yen, i think

[Shakespeare]

6. You are correct. n/t

[ret5hd]

13. Well, technically Renminbi

[soothsayer]

4. this is certainly one of the reasons we want to bomb iran.

Iraq, syria, and iran went to euros. our dollar is backed by oil now, so this really messes up our big ponzi scheme of keeping the worthless dollar afloat (well, not worthless----it's just inflated by 20% at the moment---on its way to being worthless). as soon as we took over iraq we switched them back to trading for dollars. i'm surprised there are enough euros to handle china's big energy needs, but i guess there are.

[sutz12]

7. Which means China will probably start dumping dollars, right...

What will this do to the US Debt they own?

:scared:

[lovuian]

8. Its beginning the Oil /Euro and bye bye

Oil /dollar

[Jcrowley]

9. Two more bits

Gulf economies to 'drop the dollar'

Nasser al-Shaali believes Gulf states will look
at eastern markets 'aggressively'

Gulf economies will move away from a dollar currency peg and shift foreign exchange reserves away from dollar to other currencies, including the Chinese yuan, the chief executive of Dubai International Financial Centre (DIFC) has said.

http://english.aljazeera.net/NR/exeres/B09C0BC3-9CFC-4F8C-84B9-C8AC743C7389.htm

Venezuela signs oil deal with China

China had given its approval to $6bn investment fund, for work in Venezuela

Venezuela has signed deals to supply oil to China as part of a drive by Hugo Chavez, the south American nation's president, to break his dependence on energy exports to the United States.

Venezuela will double its exports to China by sending 300,000 barrels per day of crude in 2007, officials said at a signing ceremony in Caracas on Monday.
"Venezuela has always said it wants to turn itself into a secure and increasing source of oil supply to China," Chavez said at a gathering marking the visit of Li Changchun, a member of China's Politburo Standing Committee.


http://english.aljazeera.net/NR/exeres/1A5B371D-83DA-450F-8CC5-47E57CB3C7FF.htm

[BayCityProgressive]

10. The US empire

is on the decline and will soon lose it's status as world power and empire. All of it's client states such as Israel, Pakistan, Saudi Arabia, Britian ect will no longer follow our commands and we will be done. Rather than integrate and create a peaceful world, we chose empire and unilateralism. Now we will pay the price.

[anotherdrew]

17. I can't wait to watch the Reagan and the Bush rot in mothballs

how long will we even be able to afford to operate that shit

[ckramer]

24. Americans voted Bush into office twice

go figure.

[bdamomma]

35. we reap what we have sown.

sad, to have these bums still in power after 6 years, they have really screwed us.

[donkeyotay]

34. The CEO presidency has been such a success

That whole business with driving Venezuela away from selling to the US has been under reported. We also lost out in Cuba, but we're fighting in Iraq for oil. Doesn't make any sense to me. If we drove cars instead of Suburban Assault Vehicles (our way of life?) and acted decently to our neighbors...oh silly me. What would happen to the privatized defense spending?

[Doctor_J]

40. What do you mean?

Smirk ran this operation just like all of his others - right into the ground.

Anyone who didn't see this coming listens to too much hate radio.

[donkeyotay]

41. I don't know what I mean

Maybe I should have used this :sarcasm: I'm just sick of the stupidity. The enormous, honking dumbassed inability of this country to do anything for the people - any people. We're just being run by the military industrial warmongering complex, and I'm extra bummed by it all today.

But, maybe you knew that and I misread your post? Sorry if I'm incoherent.

[Doctor_J]

42. I got your meaning

I guess I should have added the sarcasm smilie too.

Right after Il Dunce' took office the media showered us with this "CEO president" :puke:. They neglected to tell us that * is to businesses what the iceberg was to the Titanic.

[n2doc]

11. For all of the chattering about how nothing is wrong

Gold is still above $650 (even before the latest crisis) and oil at $60 (ditto). The traditional dollar value measures are telling us that it is being devalued. Next crisis we will see 1000 gold and 100 oil, and they will then probably go back to some level higher than now. Slow cooking...

[CountAllVotes]

21. I heard gold was going to hit $3,000.00 an oz. in 10 years

possibly sooner eh?

:kick:

[patrice]

12. The Gulf States are diversifying also.

http://english.aljazeera.net/NR/exeres/B09C0BC3-9CFC-4F8C-84B9-C8AC743C7389.htm
:scared:

[jaksavage]

14. Oh Chit

Nightmares come true.

[bamacrat]

16. How long will we be able to keep up the SuperPower look, without any money?

The current administration has fucked this country up. FUBAR

[Fovea]

19. With a command economy

and a non convertable currency... one year maybe.

[VegasWolf]

18. Really can't blame the Chinese! Who wants to be holding US dollars when they turn into pesos?

Even Fearless Dick-head Cheney moved 100 million US dollars into euros. The walls are tumbling.

[Bigmack]

36. Link on that? nt

nt

[VegasWolf]

37. Lou Dobbs and CNBC reported that awhile back. nt

[CountAllVotes]

20. I'd say buy more gold now

make that 24K ...

:kick:

[bluetrain]

27. How do you buy gold? I'm totally serious. Where do you get it? Where are

you supposed to keep it? Why is it worth so much money?

[Crayson]

30. Gold

Why is it worth so much?
Why is a paper bill worth 100 $ ?
Because it represents this value. Because everybody else will give you the object you desire if you give them the bill that represents this value.
A 100 $ bill represents this value because it is backed by the national bank who has exactly that much gold in their vaults as there are dollars worth.

How to buy gold?
You don't need to go to a bank and buy a gold bar. You can as well buy precious metals online.
They'll go into your portfolio.

But you can of course also try to go to your bank and tell them that you want to buy a bar of gold.


Hint:
If i were you, I'd buy COPPER instead.
This is much more likely to rise, specially if you think that China's industry rises too.
They need copper like hell.
Imagine all the power lines, phones, electronics... all needs copper.

[IDemo]

31. Are ETF's a safe bet for metals investors?

Exchange traded funds (ETF's) such as StreetTracks Gold sound like a good way to invest, but some of the diehard 'gold bugs' believe that nothing will replace having physical possession of bars/ingots/coins.

[CountAllVotes]

32. I don't invest in the stock market or ETFs

You can seriously lose your ass in both places.

I believe in buying and holding and keeping it locked up in a safety deposit box.

There are many places to buy gold. I would avoid eBay however (much fraud on there w/coins according to a good friend of mine that is really into buying and selling gold - he too believes in holding it, not investing in it).

Here are a few that I know of:

1. www.apmex.com
2. www.golddealer.com
3. www.monex.com
4. www.kitco.com

I have never bought from any of these places but I know people that have and they were quite satisfied.

Personally, I find the U.S. Mint to be a very good place to buy from as you have the option of returning what you buy from them and getting a refund should you so desire. Don't forget silver either - a far more reasonable investment for me and many others out there. www.usmint.com FYI

:kick:

[termo]

44. as good as gold, lmao !

it is long ago dollar isn't backed up by gold anymore, wake up.
(google dollar gold nixon August 15th 1971)

[CountAllVotes]

33. see my reply below

<eom>

[VegasWolf]

38. Actually you want ot invest in euros. Euros will go up as the dollar goes down. Simply follow

what the rich multi-millionaires are doing in this country. They are ensuring that they will always be well off.

[ProudDad]

22. Woah, this it BIG

This is the real reason behind gulf war I and II -- Saddam threatened to switch to Euros...

The U.S. house of cards economy may soon collapse...

[ckramer]

25. The fact is that USA can't invade every country that trades oil in Euro

And there will be more and more countries staying away from dollar because they are disgusted with the behavior of the Bush admin.

International bully/cowboy policy doesn't pay!

[Mojorabbit]

23. This is why

we will never leave Iraq. Got to control that oil.

[daleo]

26. The wheels of the gods grind slowly

But they grind exceedingly sure.

This took a while, but lots of people said it would happen. There is more than one way to tame a wild superpower.

[OneBlueSky]

28. and thus the reason for the impending attack on Iran . . .

so the U.S. can control the oil and make sure that all trades are in dollars . . .

[Broadslidin]

29. With a U.S. attack upon Iran, will China Begin to Financially Strangle.....

the imperial amurikan christians
and their malignant federal government?

[Doctor_J]

43. This is what I see happening

Right now Chinese peasants are making our sneakers for $3/day. In 25 years, my grandkids will be getting paid $3/day to make sneakers for the chinese.

[HuffleClaw]

39. its stuff like this that truly scares Bushco.

and its something they can do NOTHING about.