Sunday, May 07, 2006

Iran: will only sell oil in Euros

In July Iran will ditch the dollar in favour of the euro as the currency in which it will accept payments for its oil and natural gas exports.




Iranian president Mahmoud Iran's Oil Ministry took the next step toward establishing an oil trading market denominated in euros, rather than the US dollar, by granting a license for the bourse, Iranian state-run television reported.

Just who would trade on the market wasn't immediately apparent. Iranian television did not mention traders or governments willing to market or purchase products on the exchange, nor did it say when it would open for business, the Associated Press (AP) reported.

"Iran has registered an oil bourse on the Persian Gulf island of Kish in which oil would be sold in euros," the broadcast said. Kish, located off the coast of southern Iran, houses the offices of some 100 Iranian and foreign oil companies.

Oil trading is currently only conducted in dollars on markets in New York and London.

According to AP, Iranian legislators earlier this year urged the government to set up the market to reduce the United States' influence over the Islamic republic's economy. They also criticized Oil Minister Sayed Kazem Vaziri Hamaneh, saying he had delayed setting up the bourse.

If the market succeeds, observers say euro-denominated oil sales could eventually convince central bankers to convert some US dollar reserves into euros, possibly causing a decline in the dollar's value.

First floated in 2004 when reformist president Mohammad Khatami was in power, the idea of a euros-traded oil bourse gained new life after the stridently nationalist Mahmoud Ahmadinejad was elected president last summer, AP pointed out.

As the fourth-largest oil producing country in the world, the second in the Organization of Petroleum Exporting countries and controlling about 5 percent of the global oil supply, Iran has a measure of influence over international oil markets. Tehran also partially controls the Persian Gulf's Strait of Hormuz through which much of the world's oil supply must pass, AP added.

Iran has sought to wield its oil resources as a bargaining tool in Tehran's ongoing standoff with the West over its nuclear program.

Iran's deputy oil minister, M.H. Nejad Hosseinian, said Thursday he doubted the UN Security Council would impose sanctions on Iran's oil sector because such a move would drive oil prices higher, AP stated.

Council members are considering imposing sanctions on Iran for defying their request to halt all uranium enrichment-related activities by late last month

Source Here.

8 Comments:

Blogger Hype said...

Have you seen the dollar lately? The recession is just around the corner. Everything needs to be re-evaulated. That is what happens when you have a fed controlled by neo-cons. They just keep printing money. Keep an eye on World Bank.

-Hype

May 08, 2006 5:16 pm  
Blogger _H_ said...

I agree hype , the quicker they print the faster this new recession will come. It will be even worse when Iran refuses to accept dollars for its oil...

scary times

May 08, 2006 6:09 pm  
Blogger Hype said...

there is a lot of rhetoric coming from both sides but the writing is on the wall. anybody with their eyes open should be able to see how this is going to play out. We are 6 months away from mid-term elections. I expect the rhetoric to get worse. However, it seems to me the neo-cons have lost the public support they needed to pull this crap.

-Hype

May 08, 2006 7:39 pm  
Blogger _H_ said...

6 months from the election sounds like 5 months from the start of the next war..

Watching the death of the Neocons is like watching one of those old cowboy movies when you can see the guy has been shot but he will still take the next three months to roll over and die ..

We have the same problem here . 50 MPs from blairs own party have signed a letter that says 'for god sake go' but he takes no notice and just looks more and more stupid every day.

May 08, 2006 9:00 pm  
Blogger Hype said...

I really think they lost the public support they needed to be able to go to war and keep their jobs during an election year.

Iran, Immigration, Gay marriage/adoption and abortion were going to be their ticket to controlling our government.

That all changed when they tried to sell our ports. That is when I noticed the regular Texan on the street taking the time to read about what his party was doing. Here in Texas the port deal was big. The other issues won't help them as much as the port issue hurt them. In summary I expect the Republicans to get less votes across the board. Their base is going to vote for the other guy or stay home. After the mid-term elections BushCo will not be able to rely on their rubberstamp congress. At least one of the houses will be ours and we will investigate more and quite possibly impeach the President.

-Hype

May 08, 2006 9:45 pm  
Blogger _H_ said...

Lets hope your feel for what's happening on the ground is correct Hype.

Lives are being lost everyday. If its the port issue that does it then thats fine by me just as long as we get them out

Millions around the world obviously can not vote in US elections but will rejoice in the fact that sanity is returning to the U.S.A

May 08, 2006 10:35 pm  
Anonymous "Mexile" said...

Has anyone else noticed that the quickest, and easiest way to join the "axis of evil" is to price your commodities in Euros instead of dollars. I never could understand why Cuba and Venezuela were considered so dangerous by some of the Bushistas until someone pointed out that both countries prefer -- or say they would switch -- to payments in Euros.

May 09, 2006 4:32 am  
Blogger _H_ said...

"Has anyone else noticed that the quickest, and easiest way to join the "axis of evil"


It has crossed our minds yes. I have even spotted a few of the right wing sites making this connection aswell ..

Thank you for taking the time to comment
mexille

May 10, 2006 4:32 am  

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