U.S. Is Facing A Major Challenge As Petrodollar Loses ForceThis is a big deal when it comes to trading Oil globally. if the US loses that it will affect the USD. This started when Russia wouldn't accept any currency other than the Ruble to pay for NG being bought in Europe and countries that refused were cut off from NG immediately and was done to give Russia currency strength. I've seen a lot happen in the economy over 60yrs and this could snowball allowing other countries to gain strength through commodities trading in their currency and could change the world as it is right now where USD is accepted as a powerful currency anywhere in the world. Whatever happens, will take a while to change and I wonder how Oil would change if something like this took effect.
The wind really got kicked out of Oil lately and last night when Oil was over $77 it looked like today would be green but overseas who usually add strength to Oil through the night let it fall further so this isn't just a US lead sell-off anymore and maybe Oil will push higher through the day but tomorrow before the markets open is US Unemployment Rate, Non-Farm Payrolls plus at 10am ISM Non-Manufacturing PMI and if they come in lower, not good for Oil but I did notice today that US Factory Orders were up but that's for transportation, aircraft parts to appliances but Factory Orders excluding Transportation were down again. Right now the market is weighed down because of Oil Surplus. This week has been a write-off for Oil hopefully over the weekend this is shaken off and the focus is back on China. $70+ Oil is no good for stocks but we're getting used to lower Oil not being such a shock as it was when $70+ was first hit falling from $120
The U.S. Is Facing A Major Challenge As Petrodollar Loses Force | OilPrice.com