• 4 minutes England Running Out of Water?
  • 7 minutes Trump to Make Allies Pay More to Host US Bases
  • 10 minutes U.S. Shale Output may Start Dropping Next Year
  • 14 minutes Washington Eyes Crackdown On OPEC
  • 1 hour Russian Effect: U.S. May Soon Pause Preparations For Delivering F-35s To Turkey
  • 45 mins New Rebate For EVs in Canada
  • 1 hour China's Expansion: Italy Leads Europe Into China’s Embrace
  • 49 mins Poll: Will Renewables Save the World?
  • 2 hours Chile Tests Floating Solar Farm
  • 19 hours 3 Pipes: EPIC 900K, CACTUS II 670K, GREY OAKS 800K
  • 20 hours Trump sells out his base to please Wallstreet and Oil industry
  • 3 hours Biomass, Ethanol No Longer Green
  • 4 hours The Political Debacle: Brexit delayed
  • 11 hours Trump Tariffs On China Working
  • 9 hours Boeing Faces Safety Questions After Second 737 Crash In Five Months
  • 18 hours No Mercy: EU Fines Google $1.7 billion For Abusing Online Ads Market
  • 16 hours Oil-sands recovery by solvents has started on a trial basis; first loads now shipped.
Capping The Oil Price Rally

Capping The Oil Price Rally

OPEC’s recent meeting in Baku…

LNG Sector Dangerously Dependent On Chinese Demand

LNG Sector Dangerously Dependent On Chinese Demand

Industry executives warned that the…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing for news outlets such as iNVEZZ and…

More Info

Russia May Turn To Cryptocurrencies For Oil Trade

Putin

Russia may be looking to use cryptocurrencies for oil trade to avoid payments in U.S. dollars and limit the impact of the U.S. sanctions, Russia’s government-backed outlet RT reports.  

The bitcoin mania—on which the jury is still out whether it will be the biggest bubble in history or a success—could be a “fresh catalyst” for countries that want to ditch the U.S. dollar in oil trade, according to Stephen Brennock, an oil analyst at PVM Oil Associates.

“The advent of cryptocurrencies, therefore, represents a fresh catalyst for commodity-producing countries wishing to abandon the dollar as a means of payment for oil,” Brennock said in a research note on Friday, quoted by CNBC

Last week, Venezuela’s President Nicolas Maduro announced that the country wanted to launch a cryptocurrency—the petro—backed by oil, diamonds, and gold reserves. In his regular hours-long Sunday broadcast, Maduro said that the petro would help the country to “advance in issues of monetary sovereignty, to make financial transactions and overcome the financial blockade.”

Venezuela’s opposition lawmakers say the announcement of a cryptocurrency creation is a farce, and the plan may not be implemented at all.

If Maduro’s plan for the petro cryptocurrency sees the light of day and attracts interest, “it may eventually prevail as a means of conducting financial transactions — including oil sales,” according to analyst Brennock.

Related: Oil Investors Are Growing Impatient

According to Russia’s RT, cryptocurrencies “are anonymous and decentralized, which limits the effect of US economic sanctions on trade deals for countries like Russia, Iran and Venezuela.”

China, however, could be the “sticking point” for future cryptocurrency transactions, according to Brennock.

China is aiming to have its own ‘petroyuan’ dethrone the U.S. dollar in oil transactions. At the same time, Beijing shut down Bitcoin exchanges earlier this year as part of its plan to ban digital currencies to reduce financial risks.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News