The Oil Drum

I think this is getting off the topic of oil production and heading into the way in which oil is traded. The flattening in UK oil consumption can be shown in the Nth Rock credit squeeze. This is because the countries you are referring to are beginning to shift the way they trade oil from US$ to €'s the problem hear is about the availability of credit not the availability of oil reserves. Under this scenario it is more a case of the last man standing, will oil be traded in $ € or cash in the local currency. The economic implications of this for the countries that are trading outside the US$ is profound. Even if say Iran further linits it's production without expanding it's € based bourse, it will cause pressure on, for examplke US housing prices. The lack of liquidity in markets will pinch oil exploration rather than increases in price.