When did the US dollar become the official curency of OPEC?

You're asking about the pricing of oil in dollars rather than in another currency when oil as a commodity and its derivative instruments are traded on world markets?

To the best I can ascertain, the question has only recently arisen; since OPEC's founding in 1949, oil has been priced and traded in U.S. dollars - I don't know if it was exclusively so, but it would make sense. Like all commodities whose derivatives are traded through NYMEX and CBOT, contracts are written and settled in dollar terms. At one point, the U.S. was the world's leading producer and leading consumer of crude oil, so it would make sense that where oil is pumped, refined, distilled, traded and sold, it would adopt the local currency.

By September, 1971, crude oil was definitively traded by OPEC in dollar terms - the cartel took actions to offset the devaluation of the U.S. dollar, not by switching to another currency but by setting the price of crude.

Is it possible that oil would shift to being traded in euros rather than dollars? This is possible, though it behooves the cartel members to keep oil priced in dollar terms because the dollar (despite its recent depreciation) remains the most trusted fiat currency in the world, with the euro making a close second. Part of this reason is that U.S. Treasury securities are viewed as utterly risk-free investments, and U.S. laws make it easier for foreigners to invest in U.S. companies compared with the stringent application of European laws upon European companies. Thus, there is more for OPEC members to use dollars for.

It has been suggested that OPEC may shift to the currency of its future largest purchaser, namely China and its renminbi. However, at this point the renminbi does not exchange freely and does not float freely, and it is difficult for foreign investors to purchase Chinese property.

great question. that's what the U. S. is petrified of. Iran had to head faraway from accepting the U. S. dollar for his or her oil bourse, and that they have got been particularly useful, when you consider that they are in a position to now sell their oil for euros and different currencies such with the aid of fact the yen and roubles. If OPEC follows fit, then the cost of the U. S. dollar will flow down some extra, and could advance into almost valueless. the cost of the U. S. distant places funds has been especially supported via it quite is monopoly interior the oil sales, when you consider that oil sales have been only transacted in US funds. If that help is long previous, then the U. S. dollar will flow right into a unfastened-fall, and oil fees in US funds will flow sky-intense. Now, understanding that, the U. S. government will do each thing they are in a position to to no longer enable that take place, or a minimum of they're going to attempt and sluggish it down. happily, with the aid of fact the U. S. dollar is a worldwide reserve distant places funds, it particularly is interior the perfect interest of different countries to no longer enable the U. S. dollar fall. So, different countries can help in making the fall slower. yet finally, it quite is going to fall to tiers that advance into under no circumstances considered earlier.