This is more about eliminating trade barriers between gulf states than any serious attempt to replace the dollar in oil trading. Consider the gulf's major customers, Japan and China. What are they going to sell to the gulf states to earn enough Gulfos to buy oil? Nothing, that's what. The place is too small to absorb the kind of money those two spend on oil. Now add in everyone else who trades for oil and ask yourself what currency they're going to buy Golfo's with. Dollars? All you're doing here is creating one more currency transaction with attendant slippage. Doesn't solve a thing.

ebear