I’m not specifically targeting oil stories recently. After all, asset value write downs at the major investment banks look like they may total a half a trillion dollars, inventories of new and existing homes remain high, we are hearing the word recession more and more often from various analysts including a lead article in the Economist, and, of course discussion of local TPZ policy continues at the county level. There are plenty of things think about.
Never the less, this story seems worth noting. With oil prices still near a recent peak, and the dollar index tentatively slowing it’s rapid depreciation in the past week this story may have more to say about where our economy is headed than all the others — not to mention US foreign policy. We’ll see what they decide…
FT.com / World – Opec nations clash over weak dollar
By Javier Blas and Ed Crooks in Riyadh
November 16 2007 22:30
Opec countries meeting in Saudi Arabia clashed on Friday over the declaration to be made by leaders at this weekend’s summit, as Venezuela and Iran pushed for a statement on the impact of the weak dollar on the group’s revenues.
The disagreement was revealed when a ministerial meeting Friday afternoon, supposed to be in closed session, was accidentally broadcast live to reporters.
The Iranian and Venezuelan ministers called for more radical measures and a specific mention of the effect of the dollar to be added to the draft declaration.
But Saud Al-Faisal, the Saudi foreign affairs minister, warned the meeting: “The mere mention that Opec is studying the issue of the dollar is going to have an impact.”
He said a reference to the US currency in the declaration could cause the dollar to “collapse”.”
