Oil and USA dollar problem for USA covid 19 New oil

[cryptoboss2020]

Oil is cheap and oil reservers are full.

Countries have enough oil and before specially under bush regime world needed the USA dollar to Buy oil.  USA dollar was backed by oil.
Now this is the Question what is the other thing USA dollar need to use to stay as reserve currency with real value?
The oil is not in high demand... So what commoties they Will use what all the world need so badly that they need USA dollars?


My guess are that its the covid 19 vaccasines the New oil what can back up USA dollars.
But this covid vaccasines is not for ever so at some point demand Will end.... The USA need new thing then what the whole world will need from them?  Oil might not be since OPEC use euro and Russian rubles currency!


Whats your toughts?  Correct me of im wrong

[Mauser]

Oil is cheap and oil reservers are full.

Countries have enough oil and before specially under bush regime world needed the USA dollar to Buy oil.  USA dollar was backed by oil.
Now this is the Question what is the other thing USA dollar need to use to stay as reserve currency with real value?
The oil is not in high demand... So what commoties they Will use what all the world need so badly that they need USA dollars?


My guess are that its the covid 19 vaccasines the New oil what can back up USA dollars.
But this covid vaccasines is not for ever so at some point demand Will end.... The USA need new thing then what the whole world will need from them?  Oil might not be since OPEC use euro and Russian rubles currency!


Whats your toughts?  Correct me of im wrong

The corona vaccine could maybe be traded as a commodity, but I don't think it will last for very long. Because many companies around the world should go into mass production. Also the denomination shouldn't be in USD because the vaccine is going to be produced everywhere. Biontech for example is a German company, so their cost is likely going to be in EUR. Pfizer is an international companies with laboratories all around the world.

[fiulpro]

Oil is not cheap everywhere. It's only cheap in certain countries. USA is ranked 39th when it comes to the prices of oil. Oil reserves are full ?
I do believe that by oil you mean things like : petrol which is something that we call : exhaustive resources, non-renewable resources.

Globally, we currently consume the equivalent of over 11 billion tonnes of oil from fossil fuels every year. Crude oil reserves are vanishing at a rate of more than 4 billion tonnes a year – so if we carry on as we are, our known oil deposits could run out in just over 53 years.

- look at this information from ecotricity

*Now I don't get why you think that oil reserves are full and oil is cheap ?
I do believe it might be very specific for your particular county. Rest when we talk about backing up. I think that USD should be backed by things like: Gold, silver , stable-coins if you may. Cryptocurrencies- no since we need a certain degree of stability there.

It can also be backed up by the nations which are supporting USA. They can interrelate their economy and make it even more stronger. Who knows?? Just a small thought out of my mind.

[ampu]

The demand for the US dollar is falling, and Americans need to print less money to secure the value of the dollar. The impact of the pandemic is also an event to make Americans aware of the value of the dollar relative to the rest of the world. Even though there is a vaccine for COVID, the economy won't come back so easily as energy needs have decreased, so will economic activities, it will take time to adjust everything. follow an upward trajectory.

[Reid]

You are correct.
Vaccines will slow down in demands once countries already bought it and people are injected with it.
Newborns will be the next who will need it but I don't think that will be enough to keep the value.

Damn, you gave me a difficult time thinking about what could be their next step would be.
Is it possible that they will lean over the technology industry?

[wxa7115]

Oil is cheap and oil reservers are full.

Countries have enough oil and before specially under bush regime world needed the USA dollar to Buy oil.  USA dollar was backed by oil.
Now this is the Question what is the other thing USA dollar need to use to stay as reserve currency with real value?
The oil is not in high demand... So what commoties they Will use what all the world need so badly that they need USA dollars?


My guess are that its the covid 19 vaccasines the New oil what can back up USA dollars.
But this covid vaccasines is not for ever so at some point demand Will end.... The USA need new thing then what the whole world will need from them?  Oil might not be since OPEC use euro and Russian rubles currency!


Whats your toughts?  Correct me of im wrong

I find this to be unlikely, the reason is that many countries are developing their own vaccine especially those that oppose the US like Russia and China so they are not going to need the US dollar at all to make those purchases.

Also the market of oil is a big monopoly so in order to make the price to go up the producers could always reduce their production and increase the price of oil that way, it is really simple, by reducing their production the price increase offsets the loss they incurred by selling less oil and the best part is they keep the reserves high when the price rises naturally again once the pandemic is over.

[aesma]

The petrodollar is a thing, and the US dollar is of course the most powerful currency, however this is not linked to US oil production. Until recently the US was a net importer of oil, even today it's still basically neutral. Oil refineries in the US are for the most part unable to process oil produced in the US, so they need to import Saudi oil, in particular.

Oil is a volatile commodity, a small change in demand has an outsized impact on price. The world is still burning plenty of oil, and will continue to do so for decades, even if the trend is slowly downwards.

The loss of influence by the US is not really linked to this, but rather to deliberate actions by Donald Trump to make enemies out of allies, all over the world. Most countries would rather not be dependant on the US dollar if at all possible.

[bits4books]

But the US doesn't have a vaccine. China has announced testing, Russia is already running third-stage tests-and in the United States, n-people are breaking down stores and electing a President who promises to raise taxes and increase the influx of migrants.
In terms of oil, everything is sad for them - from their own oil there is only shale production, which is very expensive and in such conditions it is much cheaper to buy oil from Russia/The UAE because even at a low price, they have nice ROI because of cheap oil production. In the United States the cost of oil production exceeds all reasonable figures.

[Ridcan]

Oil will always be associated with the US dollar.  When we look at the global market, all of the transactions are done with the oil / dollar binary.  for now there are more important things than oil.  Like Covid-19 vaccine studies.  When the world returns to the old normal, oil will return to its old days and reserves will decrease and replenish.  Games will be played on Iran and Iraq again.  Someone will die again and again and oil will be taken on the pretext of freedom.  But now there is an enemy who does not distinguish between rich and poor.  The common enemy of all humanity: Covid 19.If they defeat this common enemy, the rich and politicians will make the moves they want on the chessboard.

[boyptc]

If it's the vaccine, it wouldn't even last a decade. Just after a few years through supplying the entire world with vaccine, what's next? although it will be in a continuous flow but demand would also gets lower.

How about gold? the new gold in this era which is data/information.

[verita1]

Both Brent and WTI prices are up about 11% this week after initial trial data showed the experimental COVID-19 vaccine being developed by Pfizer Inc PFE.N and Germany's BioNTech 22UAy.DE was 90% effective.

https://www.google.com/amp/s/mobile.reuters.com/article/amp/idUSKBN27R0A3

We are all hopeful for a cure for Covid19. A vaccine or a treatment that reduces their mortality is what we want as citizens of the world.
The economy is in decline, we advance little by little every day. The fact of having fewer economic activities makes us vulnerable. Virus outbreaks is a big concern because there will be fewer jobs.

[jaysabi]

Oil is cheap and oil reservers are full.

Countries have enough oil and before specially under bush regime world needed the USA dollar to Buy oil.  USA dollar was backed by oil.
Now this is the Question what is the other thing USA dollar need to use to stay as reserve currency with real value?
The oil is not in high demand... So what commoties they Will use what all the world need so badly that they need USA dollars?


My guess are that its the covid 19 vaccasines the New oil what can back up USA dollars.
But this covid vaccasines is not for ever so at some point demand Will end.... The USA need new thing then what the whole world will need from them?  Oil might not be since OPEC use euro and Russian rubles currency!


Whats your toughts?  Correct me of im wrong

The corona vaccine could maybe be traded as a commodity, but I don't think it will last for very long. Because many companies around the world should go into mass production. Also the denomination shouldn't be in USD because the vaccine is going to be produced everywhere. Biontech for example is a German company, so their cost is likely going to be in EUR. Pfizer is an international companies with laboratories all around the world.

There's no way this would be allowed to happen. It's medically unethical and the government wouldn't allow pandemic profiteering off the vaccine.  Not to mention that there is no system set up to trade a vaccine as a commodity like oil futures are.  I don't mind making the prediction that there's a zero percent chance of this happening.

[crwth]

It's hard to compare a Commodity to an actual product. Oil is necessary, while a vaccine is not (unless it's going to be required by the government). The vaccine cannot bring back the losses that it got during the pandemic, but oil can. As every country is going back to it's usually familiar, the oil demand might come back, but it cannot replenish, and the oil is depleting.

The best approach is still renewable energy and forms the new source of power for everyone In the world. Other concerns would be ideal to discuss, as well.

[so98nn]

I think you taking it in wrong way while saying vaccine is new oil for USA. Although it's not since it won't be coming from USA but other countries like India, Europe who has the capability of mass production. Though it may be researched in the Europe or USA but it will be produced and distributed by Asian channels.

The dome of USA is falling at its worst and could lead to historical event.

Oil requirements are dropping since the world logistics, human traveling has dropped severely. Businesses are operating from the house itself so no need of the same.

Asian countries and specially India will benefit the most from covid vaccine.

[zasad@]

https://en.wikipedia.org/wiki/List_of_countries_by_oil_production
https://ru.wikipedia.org/wiki/Cпиcoк_cтpaн_пo_дoбычe_нeфти
Even in 2014, the United States ranked 3rd in the world in oil production after Russia and Saudi Arabia.
I have no idea how badly the shutdown of US oil production will affect the unemployment rates in the country.
But I think it will cause a lot of other problems.

[Dorodha]

The price of fuel oil has dropped by less than half in a year due to the effects of the epidemic. But I don't think there is any difference between the dollar and the oil in the United States. Oil prices fluctuate on the basis of supply and demand theory at that time the supply of fuel oil was much higher around the world. Demand was lower than that and if the supply exceeds the demand the price goes down. According to media reports the difference in supply and demand is due to political reasons. At that time, the United States doubled its oil production despite being a major oil producer the United States imports oil all the time.

[RealMalatesta]

Oil was never the real reason why USA Dollar was the real reserve currency of the world and it really doesn't need oil prices to be high to be taken seriously. The reason was simply the fact that USA is a world power and dollar doesn't lose value as much as other currencies might. We know that UK pound may have been strong and it is not used as a reserve that badly neither, it is in many big portfolio, same goes for Euro as well even with many nations there going down with debt.

However USA is one nation that we know will do anything to keep their bottom dollar, they will always try to make capitalism work and they will always try to get richer, so putting your money into dollar was always a smart move regardless of what oil is doing at that current moment.

[zasad@]

The price of fuel oil has dropped by less than half in a year due to the effects of the epidemic. But I don't think there is any difference between the dollar and the oil in the United States. Oil prices fluctuate on the basis of supply and demand theory at that time the supply of fuel oil was much higher around the world. Demand was lower than that and if the supply exceeds the demand the price goes down. According to media reports the difference in supply and demand is due to political reasons. At that time, the United States doubled its oil production despite being a major oil producer the United States imports oil all the time.

If you want to see how the law of supply and demand works in russia, then you are welcome. The price of 95 gasoline in russia at gas stations is 2 or more times more expensive than in those countries that buy oil from russia
In America, prices at gas stations fall when oil becomes cheaper, in Russia, gasoline prices for the people only grow

[aesma]

That's because there are government controls on prices, and politicians play with it. In some other oil rich countries gas is very cheap or almost free, in the end it's the government subsidizing the price, nothing to do with free markets.

[zasad@]

That's because there are government controls on prices, and politicians play with it. In some other oil rich countries gas is very cheap or almost free, in the end it's the government subsidizing the price, nothing to do with free markets.

And what are the prices for gas and petrol in the USA for the population?
95 gasoline in Russia costs $ 0.57 per liter($ 2.16 per gallon,  if in 1 gallon 3.785 liters)
1000 cubic meters of gas costs $ 88

There are very good statistics for Europe and Russia on this site, but you will have to use a translator
https://svspb.net/novosti/stoimosti-gaza/