[Outcast_Searcher]

Somebody noticed.

Goodbye Petrodollar: Russia Accepts Yuan, Is Now China’s Biggest Oil Partner

Russia reaps the rewards of dumping the dollar.

...

The dollar is slowly losing its privileged place in international transactions. What this means for the United States is anyone’s guess.

http://thenewsdoctors.com/goodbye-petro ... l-partner/

Is it too difficult for anyone to look at a DXY chart, and look for any evidence the dollar is doomed with all this "significant" change going on re petrodollar doom?

If logic weren't a thing, the perma-doomer / collapse crowd just might have a point. As it is, NOT SO MUCH.

https://www.tradingview.com/symbols/TVC-DXY/

Go ahead. Pick your timeframe, from 1 day to all. Clearly business as usual for the dollar, IN THE REAL WORLD.

...

(For the umpteenth time, with mature FX markets trading all major currencies to the tune of several $trillion a day, the idea that any competent entity of means can't hold ANY basket of currencies they want any time they want, regardless of whatever petrodollar account balance is required to trade oil is completely nonsensical.)

Not that I'd expect the perma-doomer fast crash crowd to consider logical points or data that detract from their religion.

[onlooker]

You'd think the "people can't afford oil based products, even at low prices" nonsense spreading ETP zealotry crowd would at LEAST recognize the internal lack of logic in claiming that low oil prices are bad for consumers who are supposedly getting financially badly hurt by higher oil prices. 

Whether Short is right or not, you are completely missing the point. The oil price lowering is a symptom of the ongoing demise of the Oil Industry. It is the signal that the Oil Industry has going down the drain. Being that the Oil industry and the Economy together will be succumbing to lack of Net energy to maintain this industrial civlilization. Consumers, economic activity will be all suffering in an environment of Stagflation, a depressed Economy with the currency becoming worthless. That is all the product of reaching the dead state, whereby Oil becomes a liability to the Economy rather than a benefit.

[ROCKMAN]

Looker – You and the Rockman often view the situation similarly. But allow me to modify you a bit: “The oil price lowering is a symptom of the ongoing demise of the Oil Industry.” The demise of a number of oil companies…not the entire industry. A theoretical: max global production - 60 million bopd. It’s quite possible the INDUSTRY could be experiencing record profits at that time. Obviously, many companies around today would no longer exist. Maybe ExxonMobil might have become ExxonMobilChevron and might be one of those very profitable companies at that time. Or any other combination you can imagine. Back in the bust of the mid 80’s there were less then half the companies that existed in the boom of the late 70’s. The oil price crash at time did not kill the industry…just a lot of companies.

Again, as pointed out many times, PO does not mean we’ll have no oil production. Short of a true technical miracle the world will still produce many BILLIONS bbls of oil long after we pass PO. Maybe a TRILLION+ bbls. And there will exist hundreds of companies producing that oil. And doing so very profitably at times.

[onlooker]

Rockman, as much as I respect your acumen on matters of Oil and your patience with our rather uninformed posts at times, I am not sure. To me even though I know, you and Rockdoc have repeated that EROEI does not factor into decisions made by the Oil Industry, ultimately it has to matter. Afterall, money is just a way to price a resource taking into account supply/demand cues. Energy is obviously also priced. So, I believe that at some point the expenses/energy to exploit Oil as a energy resource will be too much to bear, of course the question is when. Some simply say that point is definitely reached when the energy to attain energy is more than the energy derived or attained.

[asg70]

The oil price lowering is a symptom of the ongoing demise of the Oil Industry.

Spoken like a true doomer NPC.

Remember not that long ago when the Saudis pumped full out to "destroy" fracking? What was the rhetoric here about that? I'm too lazy to look at the archives, but I'm pretty sure it was exactly what you're saying above. Maybe you yourself pounded out the same phrase. Guess what happened? The invisible hand of the market, that's what. The solution to high oil prices is high oil prices and the solution to low oil prices is low oil prices.

Either way, BAU continues apace.

[Pops]

Again, as pointed out many times, PO does not mean we’ll have no oil production. Short of a true technical miracle the world will still produce many BILLIONS bbls of oil long after we pass PO. Maybe a TRILLION+ bbls. And there will exist hundreds of companies producing that oil. And doing so very profitably at times.

Therein is the appeal of the "oil becomes valueless overnight" fantasy. The logical, supply/demand theory of increasing scarcity and cost bringing grinding hardship into some austere future just doesn't titillate the EOTWAWKI bone like Overnight Armageddon.

[onlooker]

So how can the Petrodollar survive these extremely low oil prices? Perhaps others more knowledgeable can weigh in

[sparky]

.
I don't know much but I suspect a lot
oil exporting countries import a lot of stuff from oil importing ones
this is the great money cycle , it should have some serious wobbles for a few years

another side of the coin is that some oil exporting countries will have to get a lot of money for their internal spending
the obvious place is to liquidate their oversea holdings particularly US bonds,
at a time when the US budget increase its cash requirement

[onlooker]

.
I don't know much but I suspect a lot
oil exporting countries import a lot of stuff from oil importing ones
this is the great money cycle , it should have some serious wobbles for a few years

another side of the coin is that some oil exporting countries will have to get a lot of money for their internal spending
the obvious place is to liquidate their oversea holdings particularly US bonds,
at a time when the US budget increase its cash requirement

Sounds like valid reasoning while it will not be annuled. Playing Devils advocate though, the world ihas been demonstrating an aversion to US financial hegemony ie. via BRICS, establishment of oil bourses that skirt OPEC etc. That certainly is partly due to a perception of an unfair deal re. the Petro dollar that bestows such an advantage to the US. But on the question at hand, unless China and US are on the same page economically, trade wise, I see the US having high levels of inflation from a devalued dollar and curtailing of imports. Not to mention the loss of priority in oil purchasing. Of course, these are side effects of a Petrodollar decline or abandonment

[REAL Green]

Petrodollar is insignificant these days. The Eurodollar is where the real power is. That is not quietly dying without taking the whole game down with it.

[AdamB]

Saudi Arabia Just Killed The Petrodollar Right In Front Of Our Eyes

The last 24 hours have marked another major waypoint along the path to my long-held contention that Russia, China and Saudi Arabia are going to make a massive, collective push to try and dethrone the U.S. dollar as global reserve currency.

[theluckycountry]

Petrodollar is insignificant these days. The Eurodollar is where the real power is. That is not quietly dying without taking the whole game down with it.

The Euro-dollar is simply US dollars held in the banks of other nations. Their power comes from the ability of the holders to leverage them up in the form of $US loans. Once the US dollar loses its standing as the reserve currency All dollars held in All places will fall in value. It's not just oil it's tied to, it's rice and Gold and all commodities traded globally through the western financial system. Oil is simply the keystone, the linchpin.

[Armageddon]

Saudi Arabia Just Killed The Petrodollar Right In Front Of Our Eyes

The last 24 hours have marked another major waypoint along the path to my long-held contention that Russia, China and Saudi Arabia are going to make a massive, collective push to try and dethrone the U.S. dollar as global reserve currency.

That’s the first thing you’ve ever said that I agree with. Welcome aboard to the correct side of things.

[AdamB]

Saudi Arabia Just Killed The Petrodollar Right In Front Of Our Eyes

The last 24 hours have marked another major waypoint along the path to my long-held contention that Russia, China and Saudi Arabia are going to make a massive, collective push to try and dethrone the U.S. dollar as global reserve currency.

That’s the first thing you’ve ever said that I agree with. Welcome aboard to the correct side of things.

I didn't say it. The referenced blog did. No different than we quoting someone in my sig line. I didn't say anything that silly either.

[theluckycountry]

On January 17 (2023), the Saudi minister of finance, Mohammed Al-Jadaan, announced that the Saudi state is open to selling oil in currencies other than the dollar. “There are no issues with discussing how we settle our trade arrangements, whether it is in the U.S. dollar, whether it is the euro, whether it is the Saudi riyal,”
https://libertarianinstitute.org/articl ... -s-empire/

When Joe Biden was a presidential candidate, he made no bones about his stance on the U.S.-Saudi relationship. Shortly after announcing his candidacy, Biden declared he was going to “cancel the blank check” the Trump administration had given Saudi Arabia during its war in Yemen. Some three months later, Biden told the Council on Foreign Relations that “America’s priorities in the Middle East should be set in Washington, not Riyadh.” 

The rhetoric became even more heated as the campaign wore on, with Biden promising to make Saudi Arabia an international “pariah” for butchering Jamal Khashoggi,.. Once elected, Biden wasted no time trying to match his words with action. Less than three weeks after his inauguration, he suspended U.S. offensive weapons sales to Saudi Arabia and appointed a veteran diplomat to help steer the absolute monarchy toward a peace agreement with Yemen. Last February, the Biden administration declassified an intelligence community report that implicated the powerful crown prince in Khashoggi’s murder, imposed sanctions on high-ranking Saudi intelligence officials for their involvement in the plot, and restricted visas to 76 Saudis deemed responsible for the targeting of dissidents overseas... 

Biden had gone to considerable lengths to stay away from the crown prince during his first year in office, preferring to speak with the ailing 86-year-old King Salman. The lack of communication likely added to the disdain both men seem to feel for each other. When asked earlier this year whether he thought Biden misunderstood him, MBS curtly replied, “I do not care.” On Friday, the 79-year-old president faced a 36-year-old prince of a different generation, temperament, world view and life experience. 
https://www.nbcnews.com/think/opinion/j ... -rcna38419

[Plantagenet]

The US Petrodollar may be dying, but the US NaturalGasdollar is stronger than ever.

By blowing up the Russia Nordstream NG pipeline* the US in one quick stroke removed Russia as they main NG supplier to Europe, and created the conditions for the US to step in
with with American exports of LNG to Europe.


Seymour Hersh, the famous American journalist, is reporting today that his sources confirm that it was US NAVY divers who blew up the Nordstream pipeline. By sabotaging the Russian NG pipeline the US has created a huge new market in the EU for AMERICAN LNG exports.

The creation of a HUGE market in the EU for US natural gas exports will guarantee the importance of the US NATURALGASDOLLAR for the foreseeable future!

Cheers!

[careinke]

Saudi Arabia Just Killed The Petrodollar Right In Front Of Our Eyes

The last 24 hours have marked another major waypoint along the path to my long-held contention that Russia, China and Saudi Arabia are going to make a massive, collective push to try and dethrone the U.S. dollar as global reserve currency.

That’s the first thing you’ve ever said that I agree with. Welcome aboard to the correct side of things.

I didn't say it. The referenced blog did. No different than we quoting someone in my sig line. I didn't say anything that silly either.

Dang, I too thought you had swallowed the Red Pill. You should use the quote feature like everyone else, it makes figuring out what you meant to say a lot easier. Your response seems to imply you thought it was a silly statement, yet it seems to be true?

Peace

[theluckycountry]

By blowing up the Russia Nordstream NG pipeline* the US in one quick stroke removed Russia as they main NG supplier to Europe, and created the conditions for the US to step in
with with American exports of LNG to Europe.

In 2021, about 99% of U.S. total annual natural gas imports were from Canada
About 46% of the total U.S. natural gas exports in 2021 were by pipeline, of which 70% went to Mexico

Do you know how much gas Russia imports? Zero. They don't play shell games and they are quite content selling their oil and gas to India and China and letting the Euro-zone freeze.
I wonder how much more it costs to import LNG from america on ships than it did to simply draw it out of a Russian pipeline? The only winner in all this is Russia, they get to keep more of their gas for the future, something the Saudis no doubt wish they had done years ago.

[AdamB]

Saudi Arabia Just Killed The Petrodollar Right In Front Of Our Eyes

The last 24 hours have marked another major waypoint along the path to my long-held contention that Russia, China and Saudi Arabia are going to make a massive, collective push to try and dethrone the U.S. dollar as global reserve currency.

That’s the first thing you’ve ever said that I agree with. Welcome aboard to the correct side of things.

I didn't say it. The referenced blog did. No different than we quoting someone in my sig line. I didn't say anything that silly either.

Dang, I too thought you had swallowed the Red Pill. You should use the quote feature like everyone else, it makes figuring out what you meant to say a lot easier. Your response seems to imply you thought it was a silly statement, yet it seems to be true?

Peace

I apologize. I was given a format to post the news, thought I was following it properly, perhaps I got it wrong? I haven't been doing it for awhile, I will review the instructions I received to see if I muffed it somehow.

[Outcast_Searcher]

Do you know how much gas Russia imports? Zero. They don't play shell games and they are quite content selling their oil and gas to India and China and letting the Euro-zone freeze.

And yet, in the REAL world, how much "freezing", re population being without gas heat, much less in actual medical problems from lack of such heat, have we seen in the news? There have been stories of conserving, not freezing and death from freezing, re an internet search I just did, re the eurozone in general.

There was lots of doomsaying and WHINING that Europe was doomed due to lack of gas last summer and early fall, but in reality (and it was all over the news), Europe worked together, stocked up on gas, and avoided that scenario. And over time, conversion to LNG, conservation, conversion to more electric, etc. can only help the scenario.

Not instadoom, as per usual, despite the usual political games from the usual suspects. So there's that.

Apparently you just do spin, not credibility.