What’s Driving Energy Prices This Week?

Earlier this month, Saudi Arabia and OPEC+ oil producers announced they would cut oil output by more than one million barrels per day. Subsequently, energy prices spiked, with the current national gas average sitting at $3.65 per gallon. But oil and gas prices aren’t the only thing shifting right now…worldwide trade currency is for some countries, too.

“China is buying LNG and paying yuan, and they’re encouraging Brazil to begin transacting their international trade into yuan as well,” explained Tim Snyder, host of Gasonomics. China is also encouraging India to start trading in their national rupee currency instead of the USD. Why are these changes mean for the U.S.’s future economic position?

The dollar has been the world’s principal reserve currency since the end of WWII and is crude oil is exchanged in USD via the petrodollar system, serving as a symbol of its stance as a world leader. Countries look to hold reserves in currencies with large, open financial markets that are quickly accessible.

Snyder stated, “Every bit of this shows the United States has advocated its position as a world leader in not only world trade, but in energy trade as well. This could have consequences for not just the United States but the world as we move through the year.”

Will these oil currency changes cause inflation to ensue in the U.S. as we push farther into 2023? Tim Snyder, host of Gasonomics, provides input on how diminishing oil output, rising energy prices, and changes in oil trading currencies intersect and impact the economy.

Follow us on social media for the latest updates in B2B!

Latest

Ensuring the Success
Boon Edam, Ensuring the Success of Our Customers
June 9, 2023

Boon Edam is a subsidiary of a Dutch company that builds architectural revolving doors and security entrance solutions for various industries. They prioritize consultation, custom fabrication, and quality control throughout the production process, as well as ongoing technical support and preventative maintenance after installation. The result is a personalized, high-quality solution for any building entrance […]

Read More
Security Solution
Providing a Complete Security Solution from Beginning to End
June 9, 2023

Boon Edam provides a complete solution for customers, from product to support after installation. The outside sales team listens to customer needs and an entire team works to see the project through production and installation. High-quality equipment is used to produce the best possible product. Service and maintenance are provided post-installation, and Boon Edam strives […]

Read More
Security Revolving Doors
Unmatched Quality and Customization: Boon Edam Leading the Way in Security Revolving Doors
June 9, 2023

At the Boon Edam factory in North Carolina, TorLok security revolving doors are built to order using state-of-the-art tools. Parts are fabricated in-house from raw materials for quality control and cost savings. Each door undergoes careful assembly and quality checks before being shipped out with hardware and installation documents. Discover the craftsmanship behind Boon Edam’s […]

Read More