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Brazil and China Want to Drop Dollar in Oil Trading

The International Energy Agency (IEA) is forecasting that oil production in 2010 should total 85.7 million barrels per day. The IEA has increased its expected oil consumption for 2010 by 500,000 barrels per day.

The agency has also revised its oil consumption forecast for China in 2009 to 8.17 million barrels per day. In the United States, the demand in the fourth quarter of 2009 is expected to decrease by 330,000 barrels per day when compared with 2008, but should rise by 320,000 barrels per day in 2010.

In the meantime, British newspaper The Independent has informed that China and a group of Arab countries are planning to replace the dollar in business transactions involving oil.

The dollar may be replaced by gold and a basket of currencies that should include the yen, the yuan, the euro and also a single currency that is being planned by the countries of the Gulf Cooperation Council (GCC), an economic bloc comprised of United Arab Emirates, Saudi Arabia, Qatar, Kuwait, Oman and Bahrain.

According to the newspaper, Brazil and India have also shown interest in replacing the dollar for other options in transactions involving oil, but the country that showed the most enthusiasm was China, due to its large volume of trade with the Middle Eastern countries.

Tupi Oil

The first load of oil extracted from the pre-salt layer in Tupi field, in the Brazilian Santos Basin, has started being processed at Henrique Lage Refinery – Revap, in São José dos Campos. A total of 42,000 cubic meters (264,000 barrels) of oil to be processed in two campaigns.

This oil is classified as having low sulphur levels – the lower the sulphur content, the easier is compliancy with future oil-product specifications, which are becoming stricter and stricter, mainly in the case of naphtha and diesel.

The oil of Tupi Field has low naphthenic acidity and good profitability, as it does not produce bunker fuel, which is a product with low added value.

The Tupi reservoir is more than 3,000 meters under the seabed, below 2,000 meters of salt, in waters at an average depth of 2,140 meters and a distance of 300 km from the coast of the state of São Paulo. The recoverable volumes in Tupi area are estimated at between 5 and 8 billion barrels of high-quality, light oil, as well as natural gas.

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  • Show Comments (6)

  • João da Silva

    VinnyCarioca
    [quote]I completely concur with you on the League of Nations/U.N……how interesting that Koffi Anao and the creator of the League of Nations were both Nobel Peace laureates…..just like Mr. President “Style over Substance”.
    I listen to you all the time Joao…I would have nominated you for that esteemed honor[/quote]

    Thanks Vinny, but I do not belong to that “League”. Lets ask ourselves what the U.N. have achieved lately.Many of the Secretary Generals were (and are still) from the “third world” countries, though I wouldn’t classify South Korea in that category. The members of U.N. talk a lot as that of OAS, but accomplish nothing. Then you have these “eternal” members of UNSC that block anything the “emerging nations” propose or veto resolutions that condemn Israel. It is indeed a happy club that stimulates the economy of NYC and Switzerland (which claims to be neutral) (of course I expect objections from ch.c).

    As for the Nobel awards for the various personalities during the past 50 years, both Alfred Noble and Dag HammarskjÀƒ¶ld must be laughing their asses off in their graves.Both of them were Swedish, weren’t they?

  • VinnyCarioca

    Joao
    [quote]Nobody listens to me except ch.c and Forrest[/quote]
    I completely concur with you on the League of Nations/U.N……how interesting that Koffi Anao and the creator of the League of Nations were both Nobel Peace laureates…..just like Mr. President “Style over Substance”.
    I listen to you all the time Joao…I would have nominated you for that esteemed honor 🙂

  • João da Silva

    [quote]Seemed like everyone (global community) was in agreement at that time.[/quote]

    Including that Koffi AnÀƒ£o. 🙁 Vinny, my dear fellow, I keep on insisting that U.N is going the same way as the “League of Nations”. Nobody listens to me except ch.c and Forrest. 😥

  • VinnyCarioca

    U.N. Resolution 1441……Yeah, that was it. Wish I could find the specific article, prior to deciding Sadam had WMD’s
    Seemed like everyone (global community) was in agreement at that time. Something about being recalcitrant to 17 U.N. resolutions. 😉

  • João da Silva

    [quote]Wish I could find the specific article, prior to deciding Sadam had WMD’s, he suggested to the opec, that instead of trading in U.S. dollars, they agree to trade in a mixed basket of currencies..the rest of opec wouldn’t go along with him……woops……WMD’s and bye bye Sadam.[/quote]

    OOPS is correct. Since the OPECers did not agree with Saddam, he decided to convert his foreign exchange reserves to EUROS. If I recall correctly about $28 Billions were converted to EUROS. Our distinguished fellow blogger Comrade Ch.c should come out with precise facts & figures. The other distinguished blogger Dr.Lloyd Cata is cordially invited to throw more light on this episode and subsequent hanging of Mr.Hussein.

  • OOPS,

    Ruh-rho, isn’t that what Iraq proposed just before U.S. switched attentions in Afghanistan looking for Osama, to Iraq looking for weapons of mass destruction? Yeah, that was it. Wish I could find the specific article, prior to deciding Sadam had WMD’s, he suggested to the opec, that instead of trading in U.S. dollars, they agree to trade in a mixed basket of currencies..the rest of opec wouldn’t go along with him……woops……WMD’s and bye bye Sadam.

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