What happens to Monies Which OPEC Nations Collect?
Crude at $60 to $65 Dollar a barrel, sucks out money (in dollars) from the importing nations. At the moment, major OPEC nations are collecting roughly $45 Billion a month into its accounts. Sixty per cent of this money is collected from the developed world. Remaining comes from the developing or low-income world (China and India included). All these monies are retained in Dollars or in European currencies (today Euro). OPEC nations import goods and services from the West and pay off from these reserves. This maintains some balance. Surplus cash stays mostly in Dollar. When the oil prices shoot up, a bigger surplus is generated. At that time OPEC nations collect a bigger cash pile to spend. Poorer nations, which export less, are at a disadvantage when the prices rise. China has plugged up this disadvantage with consumer goods exports and trade surplus. India, Pakistan and other Asian nations with no trade surplus, send labor to work in the Middle East OPEC nations. Remittance from these
