Long Shot: The Prospects for a Conversion to Euro Pricing in Oil Markets

Authors

  • Mark E. Irvine

DOI:

https://doi.org/10.6017/eurj.v1i1.8879

Keywords:

Spring 2005, social science, international studies, economics

Abstract

Oil is currently bought and sold in US dollars on the major oil markets. Recent rhetoric indicates some exporters are considering supporting a conversion to euro pricing of oil. Yet, the dollar has a firm grip. A switch is unlikely in the short- to medium-term as it would be exceedingly difficult given the structure and inertia inherent in oil markets along with the euro's second tier status to the dollar. The turbulent politics of many oil exporting countries-especially Islamic ones-could spur a spiteful movemnt to end dollar pricing but the significant obstacles producers must overcome may be too great for now. However, both economic and non-economic political concerns as a sources of change become more probable as the time horizon is extended, allowing time for the euro to mature and achieve a greater stake in international financial markets.

Author Biography

Mark E. Irvine

Mark Irvine is a junior at Boston College, majoring in International Stuides with concentrations in Economic Relations and Security Studies with a minor in Economics. He was born and grew up in Phoenix, Arizona. He is involved in the Fulton Debating Society, Model United Nations, and the College Federal Reserve Challenge competition. Other research includes a senior project studying the uses of deterrence by the threat of punishment in counterterrorism policy, focusing specifically on its long history in the Israel-Palestine case.

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Published

2005-04-15

How to Cite

Irvine, M. E. (2005). Long Shot: The Prospects for a Conversion to Euro Pricing in Oil Markets. Elements, 1(1). https://doi.org/10.6017/eurj.v1i1.8879

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Section

Articles