Thursday, October 16, 2008

OPEC devising gold backed currency?

The recent dramatic drop in oil prices has prompted OPEC to move up the date of its meeting from November 18 to October 24. The meeting is set to focus on "the global financial crisis, the world economic situation and the impacts on the oil market".

OPEC has been feeling the impact and ramifications of fluctuations in the US Dollar. Oil prices are quoted and traded in US Dollars and therefore the inflation/deflation cycles have created discontent among many OPEC members.

Could this be the correct time for OPEC nations to pursue oil being priced in a gold backed currency?