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Russian Oil Bourse Open for Business

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posted on Jun, 8 2006 @ 07:32 PM
Following is a television interview transcript with Oleg Safonov, President of the Russian Trading System. The topic is today's start of trading term contracts for Urals oil denominated in rubles. While the mainstream media is singularly concentrated on Big Brother's glorious victory against one of Goldstein's lieutenant's today, not a word about the beginning of the end for dollar hegemony.

Federal News Service
Anchor: From now on, the price of Russian oil will not be determined only in New York. Trading in Russian "black gold" begins at the RTS in Moscow on Thursday, and what is more, oil will be traded on rubles. The idea was first aired in the Presidential Address to the Federal Assembly. The aim is to strengthen the authority of the Russian ruble and raise the price of Russian oil to the level of foreign oil. How feasible is this task? With me in the studio is President of the Russian Trading System Oleg Safonov. ... [registration required for full transcript]

Please visit the link provided for the complete story.

A full version of the transcript in English is available here.

Safonov: No, it is not a trial run, it is a real start of trading in one of the key commodities that is oil, and it is true that from today term contracts for Urals oil will be traded at the Russian Trading System. And payments will be in rubles.

Anchor: When will the effects really kick in?

Safonov: As of today.

Safonov: I think as liquidity of this instrument grows, it will have a serious impact in creating conditions for free convertibility of the ruble.

Safonov: We think that a term contract for Urals oil and gold which we offer to the broadest circle of Russian investors starting from today, as well as to foreign investors, will result in heavy trading in these contracts. And the RTS stock exchange is the site that enables Russian as well as international participants to acquire Russian assets.

There have been at least two threads started on ATS today asking what is up with the stock markets:

Markets Tumble: Recession Ahead?

Stock market fall

I'm sure the Russian Oil Bourse had absolutely nothing to do with it.

Markets have been down significantly in the last few days with the movement being blamed on inflation fears, or so we are told. While inflation is a valid basis for this kind of speculation (as are many other factors), this morning's early market action happened to coincide with the late hours of the first day of trading on the new oil bourse. As the day progressed the good news out of Iraq was hailed as the reason for the late day recovery. Whatever the underlying reasons for the volatility in the markets, the ride is about to get a lot rougher.

One more point. I can't help but notice that it's very convenient and very timely that everybody is talking about the death of Goldstein's lieutenant on the day petrodollar hegemony ended.

Interesting timing for that momentous event, no? And not a mention in the mainstream media about the bourse and it's possible wide ranging and serious effects on the future of the petrodollar.

Related Discussion Threads:
Russia to trade oil in rubles - a new threat to the dollar

Russia Tentatively Approves Ban on Dollar, Euro.

Petrodollar warfare

[edit on 6/8/2006 by Gools]

posted on Jun, 8 2006 @ 08:36 PM
the dow is now down 800pts in the last month.

At the middle of trading today the market was down 180pts...but rebounded after lunch...nothing like shopping on a full stomach and actually closed about even.

I think the TIMING of Zarqawi's Death is VERY VERY Suspicious! The People Are all talking about the good news... nothing about Russia, they don't even know!

You Forgot This Link, I Think Its The Best Of All Of Them.

"Low economic growth combined with rising inflation is lethal for the stock market," said Michael Metz, chief investment strategist at Oppenheimer.

"A stagflation scenario, where you've got [economic] slowdown and inflation, is what you'll hear people talking about in the coming days and weeks," said Larry Peruzzi, senior equity trader at Boston Company Asset Management.

Does Anyone Else Wonder Why the FED Decided To HIDE their M3 Money Supply Report back in March? Are they hiding the coming inflation from us???

Mod Edit: Fixed the link.

[edit on 8-6-2006 by TheBandit795]

posted on Jun, 8 2006 @ 10:28 PM
There's only "http///" in your link.

Looks like one too many slashes is messing it up.

posted on Jun, 8 2006 @ 10:40 PM
Why is it when ever there is a bad trading week, people are always thinking recession? At least the paranoid ones are thinking that.

My point is, as Oil continues up it's jerky slope to 80 dollars a barrel, more and more companies and employees are exploring their options(due to some mystical psychological barried 80 dollars represents). One extremely popular option for my Fathers employer is Telecommuting. It's their response to Oil prices and overall Energy Prices. They have just rented out a floor by managing to get most of the staff from that floor to switch to telecommuting(the company pics up the tab for the needed equipment too) they managed to cut their energy costs by a third and as a consequence, their employees had more money in their pockets to spend on other stuff. The remaining floors feel a bit more crowded, especially the lunch room, but the levels of communications and community went up significantly.

Obviously, I don't think the next 10 years will be nearly as bad as some on here are making it out to be. High prices will help push alternatives to the forefront, and even though not any single one of those alternatives themselves can solve the entire problem, those that we have and know about combined with what we are learning in Nanotech and Biotech these days, can lead to an economy that looks utterly alien to what we are familiar with. Those who play such games as Everquest and Second Life will probably feel more comfortable then the Soccer Moms mourning the loss of their sold for scrap minivans.

Here is an interesting link...

As for this Russian move...seems like a Cash grab. Signals a major shift in policy actually. This will benefit the Oil producers in that country significantly, and if it's all above board it could create a lot of wealth in Russia for the Elite to hoard.

[edit on 8-6-2006 by sardion2000]

posted on Jun, 8 2006 @ 10:50 PM
"Russia shift fx reserves from dollar"

Russia became the latest country to shift a chunk of its central bank reserves out of the dollar, further eroding the standing of the greenback as the world’s de facto reserve currency.

Not DIRECTLY related to the opening of the oil bourse - but the announcement today that Russia will be moving its reserves from dollar holding to further support its own soverign currency fits right in with the theme many of us have been trying to get across on ATS.

Next domino will be.....___________?

posted on Jun, 8 2006 @ 11:14 PM
A Lower USD isn't such a bad thing if it's only a moderate decline.

It makes your manufacturing sector stronger as more people will buy from you again due to cheaper prices. It decreases the USD's puchasing power making it more expensive for American's to travel abroad and take more "Local" vacations. More consumer vacationers will be coming to your stores and shopping malls. The moment the CND Dollar hits par with the USD, there will be a wave of shopping heading down south for good deals.

Opposite is true with a High Canadian Currency.

It's a double edged sword really, it really hurts exporters and manufacturing as well as tourism. It also causes more and more Canadians to go south of the border to shop for deals. The "plus" side is that it makes our Natural resources much more profitable and our currency usually only rises when Resource demand is high. Funny that eh? USD plummets as well due to their dependancy on foreign natural resources(not just Oil either)

It all hinges on how low it goes. If it goes low enough and the Chinese currency goes high enough it could cause a wave of reverse out-sourcing to your country. It's the volatile nature of the beast, a savage, ruthlessly self-correcting, beast. The beasts name is Capitolism. Try to tame the beast and you get burned as is evident in the USA right now and in the near future. Go with the flow and try to follow it the best you can is really the only option.

I'm not saying things will be all peaches and cream 10-20 years now, living will still be a challenge like it always has been, just this time more people than usuall will be challenged in the short term. Hopefully, if your country is smart, will adapt. If it doesn't, then it will fall and splinter and another superpower may take it's place eventually, perhaps China, perhaps not if they can't adapt either. Living in a city with extensive mass transit is a very good way to insulate yourself as much as possible, but in some ways, it the impact is unavoidable. We may have to give up a lot of our favorite exotic foods because the cost of transportation will exceed the cost of producing the actual food and Local agriculture will fluorish in responce.

The road is clear, we just need those Soccer moms to start selling their SUVs for Scrap metal to get some changes in how we treat transportation of everything as a whole. It's difficult but not out of reach.

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