Markets
17:33, 09-Apr-2019
U.S. dollar still the main oil trading currency for OPEC: officials
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The U.S. dollar remains the main oil trading currency for OPEC members, energy governors of Saudi Arabia and the United Arab Emirates (UAE) said on Monday.
They were speaking at the 27th edition of the Middle East Petroleum and Gas Conference (MPGC 2019) which is taking place against the background of claims that a switch from U.S. dollars to other currencies had been discussed in oil circles.
The three-day meeting in Dubai, which ends on Tuesday, is looking at "the continuing volatility and supply uncertainty faced by the global oil markets," issues related to "OPEC and U.S. oil production," as well as “U.S. sanctions" against Iran and Venezuela.
“OPEC did not claim that they will change the currency in the trading and I have no views on the doability of that,” said Suhail bin Mohammed al-Mazroui, the UAE energy minister, noting that “trading with the U.S. dollar is something you don't change overnight.”
When asked about the possibility that OPEC members might discard the U.S. dollar, Saudi energy minister Khalid al-Falih said, “Absolutely not. There is no change whatsoever to our long-standing policy.”
Oil prices surged on Tuesday to five-month highs on expectations that global supplies would tighten due to fighting in Libya, OPEC-led cuts and U.S. sanctions against Iran and Venezuela.