Maduro Visits Putin, Proposes Global Oil Trade In Rubles, Yuan


Maduro Visits Putin, Proposes Global Oil Trade In Rubles, Yuan
  1. Maduro Visits Putin, Proposes Global Oil Trade In Rubles, Yuan
    peakoil.com
    Three weeks after the US imposed financial sanctions on Venezuela in an effort to cripple its economy and choke the Maduro regime, which in turn prompted Caracas to announce it would no longer receive or send payments in dollars, and that those who wished to trade Venezuelan crude would have to do so in Chinese…
    Energy
Maduro Visits Putin, Proposes Global Oil Trade In Rubles, Yuan thumbnail

Three weeks after the US imposed financial sanctions on Venezuela in an effort to cripple its economy and choke the Maduro regime, which in turn prompted Caracas to announce it would no longer receive or send payments in dollars, and that those who wished to trade Venezuelan crude would have to do so in Chinese Yuan, today during an energy summit held in Moscow, Venezuela’s president Nicolas Maduro proposed to expand his own personal blockade of the US, by proposing that all oil producing countries discuss creating a currency basket for trading crude and refined products. One which is no longer reliant on the (petro)dollar.

“Developing a new mechanism of controlling the oil market is necessary,” Maduro said on Wednesday at the Russian Energy Forum, being held in Moscow this week.

Quoted by RT, Maduro also blamed trade in crude oil paper futures as having an adverse impact on the oil market, which has undermined attempts by OPEC to stabilize prices. To counteract such “speculation”, Maduro proposed an alternative currency basket, one which is based not on the world’s reserve currency but includes the yuan, ruble, and other currencies, and which will mitigate the alleged adverse impact of futures trading.

 

 

Maduro’s proposal is merely the latest not so veiled hint at dedolarizing the global financial system by bypassing the petrodollar entirely, and rearranging a new currency basket determined by the world’s biggest oil producer, and largest oil importer.

Of course, Maduro is merely piggybacking on what China may already have in the works: recall that a month ago, the Nikkei Asian Review reported that China is preparing to launch a crude oil futures contract denominated in Chinese yuan and convertible into gold, potentially creating the most important Asian oil benchmark and allowing oil exporters to bypass U.S.-dollar denominated benchmarks by trading in yuan.

Maduro also insisted that Venezuela is dealing with its debt to Russia, currently in the billions, and that Rosneft’s deal with Venezuelan state oil producer PDVSA is “subject to negotiation.” “We fulfill all the obligations to Russia. If we get more favorable terms for restructuring the debt, this will be the result of a deal between the two governments,” said Maduro. It was unclear how Putin felt toward said proposal.

Maduro also complained that US sanctions make it difficult to negotiate the debt issue with American debt holders (something the US is well aware of). In addition to switching to a Yuan-based basket…

… Caracas has been framing a plan to deliver its crude to alternative markets should the White House impose sanctions on trading the country’s oil, Maduro said in response to a question on the possibility of PDVSA’s default. “Venezuela has plans A, B, C, and others. There are other international companies interested in buying oil and refined products. We will create the best terms for them,” he said.

It remains to be seen if a last minute agreement by Russia and China to bailout Venezuela by revoking some or all of the petrodollar’s reserve currency privileges, is in store. Needless to say, such a development would be the biggest shock to the global monetary system since Nixon killed the gold standard.

zerohedge

97 Comments on "Maduro Visits Putin, Proposes Global Oil Trade In Rubles, Yuan"

  1. Cloggie on Fri, 6th Oct 2017 2:54 am 

    “cloggie, I am sorry you are a closet Nazi but being a Nazi is out of fashion these days so you look pretty stupid and blasé. Hitler is your hero but most people find him to be one of many 20th century wicked villains.”

    A Nazi, hmmm, now let me see… what did it mean to be a national-socialist? The two most important items on their todo-list by far were:

    – rollback Versailles and get all stolen by German territories back – prevent the Jews and their communist party from taking over Germany as they had done to Russia, with millions of anti-communists killed.

    Now let me see… do these items apply to a 2017 Dutchman like me? Of course not. Versailles has nothing to do with Holland and I am not advocating that Prague, western Poland, Austria or Lithuania should return to Germany.

    Furthermore there are hardly any Jews left in Holland (160k —> 40k) as they were deported during the war to the East, where they were either gassed, if we are to believe the Americans, who famously never told a lie in their entire history, or they went to Palestine, US, Argentina, etc. So jewish communism isn’t an issue either.

    “You are a sicko racist extremist anti-American. “

    I wish that all your children will marry an African, so you can feel good about yourself and how anti-racist you are. And don’t have the nerve to polute all-white northern Italy with your commie presence, when you will cowardly flee if the coming civil war will break between left and right in Smerica. You’re not good enough. Happy brasilianizing, Daver!

  2. Cloggie on Fri, 6th Oct 2017 3:04 am 

    Davy, you are screaming “anti-American” in every one of your desperate posts. Could you give us a few reasons why an average non-American should love Washington?

    Thanks in advance.

    https://www.theguardian.com/commentisfree/2007/feb/14/comment.businesscomment

    “Once the most beloved country in the world, the US is now the most hated – Jan Morris”

    (and just wait until the world finds out the truth about WW2, holotale and US cooperation with the Soviets)

  3. Davy on Fri, 6th Oct 2017 7:41 am 

    cloggie, the US has never been a superpower in wheat. It has always been in the top 5. Who cares about your anti-American dumbism. You screwed up and said Russia exported more grain. Please learn more about farming before you stick your foot in your mouth. BTW, Bloomberg did not screw it up you did. Nowhere did they say more grain.

  4. Davy on Fri, 6th Oct 2017 7:48 am 

    “Davy, you are screaming “anti-American” in every one of your desperate posts. Could you give us a few reasons why an average non-American should love Washington?”

    No reason anti-American Nazi slut. I am here wanting to fight the many bad things about the US but you stupid rabid extremist anti-Americans turned the discussion into everything American is bad and all Americans are going to die soon in a Deagel dot com collapse. All you stupid anti-American sluts are Deagel dot com bums. The problem is you anti-American sluts don’t know the difference between Washington and the rest of America. BTW, you have never been here Nazi slut.

  5. Cloggie on Fri, 6th Oct 2017 9:20 am 

    “and all Americans are going to die soon in a Deagel dot com collapse. All you stupid anti-American sluts are Deagel dot com bums. The problem is you anti-American sluts don’t know the difference between Washington and the rest of America.”

    Deagle? What is the difference between a deagle and a bagel?

    Very sleazy Daver boy, introducing a distinction between Washington and “America”. But the only time “America” protests is when American lives are at stake, like with Vietnam, not before.

    You are not going to escape the iron fist of Karma.

  6. Cloggie on Fri, 6th Oct 2017 9:23 am 

    “You screwed up and said Russia exported more grain. ”

    You have not shown that they did not.

  7. joe on Fri, 6th Oct 2017 9:55 am 

    Currency basket is actually not a bad idea. Since the dollar is artificially strong because of oil, by moving to a broader base of currencies, many jobs would flow straight back to America because people could actually afford things made in the USA. Maduros idea seems anti – American but Nixons petro-dollar idea is very much out of date and should be reviewed anyway. Right now it’s only really benefits pension funds and the 0.1%.

  8. GregT on Fri, 6th Oct 2017 10:02 am 

    “Wacko sicko anti-American you might explain your line in the sand bullshit. ”

    That fine line would be your sanity. Once you’ve lost it, there’s no getting it back. You’re already walking the line.

  9. GregT on Fri, 6th Oct 2017 10:12 am 

    ” the only time “America” protests is when American lives are at stake”

    The delusionalist doesn’t understand why people get upset when Americans are killed.

    He isn’t a normal Cloggie.

  10. GregT on Fri, 6th Oct 2017 10:14 am 

    A normal American.

  11. GregT on Fri, 6th Oct 2017 10:22 am 

    “All you stupid anti-American sluts are Deagel dot com bums.”

    Deagel.com is an American website.

  12. GregT on Fri, 6th Oct 2017 10:29 am 

    And perhaps you might want to explain to everyone here what it is that you are preparing for at your doomstead?

  13. GregT on Fri, 6th Oct 2017 10:38 am 

    Most specifically, why the need to produce your own food?

  14. GregT on Fri, 6th Oct 2017 10:44 am 

    Like those millions of poor dirt farmers do in Asia?

  15. GregT on Fri, 6th Oct 2017 10:46 am 

    Hundreds of millions.

  16. Davy on Fri, 6th Oct 2017 11:24 am 

    Wow, are you peeing your pants yet grehg becuase you are pushing your limits. Lol, I love when an anti-American scumbag gets all twisted up.

  17. Davy on Fri, 6th Oct 2017 11:26 am 

    Clogged, check out total grain exports then check out wheat exports and get back to me.

  18. GregT on Fri, 6th Oct 2017 11:30 am 

    Answer the questions delusionalist.

    What are you preparing for at the doomstead?

    Why the need to produce your own food?

  19. Davy on Fri, 6th Oct 2017 11:31 am 

    Grehg, dumbass, I am a doomer preparing for collapse but I don’t agree with Deagel dot com version of the destruction of the US and the growth of China like your lack of economic common sense says is the case. Boy are you stupid. I agree with a serious decline in economy and population of the entire world. That is smart but you are mad-cat agenda stupid. Got it.

  20. GregT on Fri, 6th Oct 2017 11:41 am 

    Why don’t you write to deagel.com and express your anger to them? Nobody here on PO.com had anything to do with their predictions. Got it delusionalist?

  21. GregT on Fri, 6th Oct 2017 11:51 am 

    And while you’re at it, why don’t you send a comment in to your local newspaper explaining to everyone why you can’t figure out people being upset over the largest mass killing on American soil in modern history. Don’t forget to include your full name, address, and telephone number.

  22. Davy on Fri, 6th Oct 2017 12:06 pm 

    I could care less about a stupid extremist web site, grehger. What I found out about you is you believe the numbers and are ok with them so it was useful to flush out your anti-American Deagel dot com agenda. You need to write them and tell them how stupid you look because of it.

  23. rockman on Fri, 6th Oct 2017 12:07 pm 

    Mac – “…perhaps they will no longer buy from the US? I am sure other countries would be happy to step in and replace American goods with their own. China comes to mind, as does Russia. The US is NOT indispensable.”

    Thanks but that doesn’t answer the question. If a European country wants to pay for a commodity imported from the US in Euros they can. But they have to first convert those Euros to dollars. Or have the buyer accept Euros. But if the buyer chooses to accept Euros as payment it will adjust the price to reflect the current exchange rate, right? When I was working in Africa it took $1.38 to buy a Euro. Now I believe it only takes about $1.12.

    So what does the decision to buy from the US have to do with the denomination? The exchange rate obviously can hurt. But that has nothing to do with the denomination: it’s going to cost X amount of Euros what ever the actual denomination they transfer to the US company be it $’s, rubles, pesos, etc. The US company will still end up with the same number of $’s.

    And yes the US is indispensable for countries that are keeping their people fed with our huge grain exports. No one in the world can replace the US in that regards. Likewise no country has yet to been able to replace the 71 BILLION GALLONS of refinery products the US exports every year. The world’s fossil fuel consumers don’t buy oil…they buy refinery products.

    https://www.eia.gov/dnav/pet/pet_move_expc_a_EPP0_EEX_mbbl_a.htm

    Of course those countries such as Canada and Mexico that export oil to the US are indispensable to us. Except oddly not really true in the case of Mexico which is a NET fossil fuel IMPORTER due to refinery products mostly coming from the US. And Canadians did also import 8.9 BILLION GALLONS of US refinery products in 2016.

    BTW in 2015 the Philippines imported 100 MILLION GALLONS of US refinery products. Also just thru Aug 2017 the Philippines had a $2.2 BILLION surplus in trade with the US. So in general it looks like your businesses need US consumers more then we need yours. You should be hoping our economy stays strong and continues buying so much from yours.

    In general it does look like the US is a tad indispensable to the Philippine economy.

  24. Davy on Fri, 6th Oct 2017 12:15 pm 

    “Hurricane Nate Heads For Gulf Coast: Goldman Projects Dramatic Refining Slowdown” http://tinyurl.com/ybmk6xaa

    “As Goldman Sachs explains, a new storm, Nate, is heading for the US Gulf Coast and is expected to land as a category 1 hurricane in Louisiana on Sunday. While the overall impact on the US oil sector is likely to be more modest than for Harvey (category 4 at landfall), it may have a similar supply impact given the path threatens more US Gulf Coast platforms. The demand impact is likely to be much smaller than Harvey given the lower intensity of the storm, the smaller amount of downstream capacity at risk and finally the smaller population impacted. On the refining side, 2.4 mb/d of refining capacity is at risk (13% of US capacity). We expect the storm to likely (1) have little or only a slightly bullish aggregate impact on the global oil market in October given the expected similarly modest supply and demand losses, (2) support US and global refining margins, with distillate likely to be most sustainably impacted given the already low inventory levels, and finally (3) reduce US crude export flows, initially weighing on the WTI-Brent spread. The resiliency of the US oil infrastructure during Harvey and the lesser intensity of the storm suggest however that these impacts should remain overall modest with flooding along the Mississippi River the likely greater threat. Of course, as Accuweather warned earlier, warm temperatures in the Gulf of Mexico could bolster the storm as it moves northeast from Central America toward the southwestern US.”

  25. GregT on Fri, 6th Oct 2017 12:15 pm 

    “I could care less about a stupid extremist web site”

    Then why do you have your little panties all in a knot?

  26. rockman on Fri, 6th Oct 2017 12:26 pm 

    Cloggie – With respect to wheat the US is #1 and Russia #3. But not a huge difference. But Russia has been increasing a good bit and might be exceeding the US at the moment.

    http://www.worldstopexports.com/wheat-exports-country/

    OTOH when it comes to total grain exports the US leaves Russia as well as other countries in the dust. This one pie chart shows the US exporting 41% of all grains with #2 just at 12%.

    http://www.fao.org/docrep/006/Y4343E/y4343e02.htm

  27. Davy on Fri, 6th Oct 2017 12:30 pm 

    grehg, you showed your true colors with Deagel dot com. You showed what you believe in and how you see the world unfolding. That is what I care about. There are multiple extremist web sites. They are a dime a dozen. What is important to me is you exposed yourself as a scum bag Deagel dot com proponent. You act like you have caring feeling for the US and its people but the reality is a façade that is a lie because beneath that facade is hate. You see the end of the US and the growth of Asia. That is typical mad-cat agenda and it is an affront to the reality of a globalized world in decline and an affront to the reality of Asian overshoot. An Asian overshoot in both population and consumption. Yes the US is likely to fall both with population and economy but Asia is not going to grow because of it. Pushing that meme is just your Asiaphile agenda of anti-Americanism.

  28. GregT on Fri, 6th Oct 2017 12:47 pm 

    You appear to be more focussed on a potential rise in Asia, then you are about a decline in America.

    That isn’t exactly what I would consider to be pro-American, more like anti-Asian.

  29. GregT on Fri, 6t…

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