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EspañolIRANIAN OIL BOURSE
(Redirected from Iranian Oil Bourse)
Iran is planning to open a commodity exchange, variously referred to as the 'Iran Petroleum Exchange', 'International Oil Bourse' or 'Iranian Oil Bourse'. The acronym 'IOB' has been used as it can be interpreted as either "International Oil Bourse" or "Iranian Oil Bourse", but it has no official status. It would be a Petrobourse for petroleum, petrochemicals and gas in various non-dollar currencies, primarily the euro. If successful, it would establish a euro-based pricing mechanism for oil trading, or oil marker as it is called by traders.
The geographical location is expected to be the Persian Gulf island of Kish (which is designated by Iran as a free trade zone.)[1].
The exchange has not yet opened, having missed at least three announced opening dates.
The three current oil markers are all US dollar denominated: North America's West Texas Intermediate crude (WTI), North Sea Brent Crude, and the UAE Dubai Crude. The two major oil bourses are the New York Mercantile Exchange (NYMEX) in New York City and the International Petroleum Exchange (IPE) in London. The proposed Iranian bourse would establish a fourth oil marker, denominated by the euro.
The Iranian oil bourse, first reported in 2005, was to have a planned opening date of March 20, 2006 [2], which is the Iranian New Year, Nauroz. According to an April 2005 report, the Tehran Stock Exchange (TSE), the Wimpole Consortium and a private staff fund for retired petroleum workers will together form the consortium developing the exchange [3].
'January 2006' Chris Cook of the Wimpole Consortium referred to delays in the process due to the election to the presidency of Mahmoud Ahmadinejad and subsequent difficulty in appointing a new oil minister acceptable both to the president and parliament [4].
'March 2006' the Petroleum Minister of Iran, Kazem Vaziri Hamaneh, announced that due to "technical glitches", the Bourse launch was postponed, with no new date set. [5]. However, as of April 26 Iran had restarted its move to open the oil market, and Kazem announced the bourse was set to open the first week of May [6].
'May 2006' Minister of Economic Affairs and Finance Davud Danesh-Jafari said the Oil Ministry has a two-month deadline for presenting the Articles of Association of the Iranian Oil Bourse. Danesh-Jafari said that the euro had not yet been finalized as the legal tender of transactions in the oil bourse, and the final decision about that depends upon the Oil Ministry’s proposed IOB Articles of Association [7]
During the first phase of its implementation, the Iranian Oil Bourse plans to offer financial derivatives relating to crude oil.
'July 2006' a building has been purchased and the projected opening date was originally slated for September 2006. [8] On September 15, Oil Minister Kazem Vaziri-Hamaneh stated that all preparatory requirements had been arranged for launching the oil stock market in the country.[9] However, the launch has still not occurred.
'December 2006' Bloomberg cited two Iranian newspapers reporting Iran's Minister of Economy Davoud Danesh-Ja'fari Iran as wanting to cut US dollar based transactions to a minimum.[10]
'March 2007' Tehran based PRESS TV reported that the Iranian Embassy in Baghdad announced a shift of its major currency from dollars to euros. Iraqis traveling to Iran will pay for a visa in euros in line with other Iran Embassy locations. [11]
'March 2007' The Scotsman reported that China's state-run Zhuhai Zhenrong Corp, the biggest buyer of Iranian crude worldwide, began paying for its oil in euros late last year. Iranian officials have said for months that more than half the OPEC member's customers switched their payment currency away from the dollar as Tehran seeks to diversify its reserves, but news of the Zhenrong change is the first outside confirmation. Japan have also announced that they would be willing to switch to Yen from US Dollars.[12] Iran's central banker announced in March 2007 that Iran had cut its holding of U.S.-dollar assets to around 20% of its foreign reserves in response to U.S. hostility.[13]
'July 2007' Iran asked Japan to pay for its oil purchases in Japanese Yen.[14]
★ Ministry of Petroleum of Iran
★ Petrobourse
★ Petroeuro
★ Petrodollar
★ Petroruble
★ Petrodollar warfare
★ Economy of Iran
★ Peak Oil
★ Dollar hegemony
1. Kish Oil Exchange Planned, Iran Daily, January 24, 2006
2. The Iranian line in the sand, Dan Crawford, The Republic (Vancouver), August 18 to 31, 2005
3. A star rises in the east, Stella Farrington, April 2005
4. Speaking freely: What the Iran 'nuclear issue' is really about, Chris Cook, January 21, 2006, Asia Times/energybulletin.net
5. A frenzied Persian new year, March 22, 2006, Asia Times
6. Iran oil bourse next week, April 26, 2006, Iranian.ws
7. Ministry to offer IOB Articles of Association in two months, May 19, 2006, Mehr News Agency
8. Iranian Journel, building has been purchased and new date is September, accessed July 6 2006
9. Iran's oil bourse to be launched, September 15, 2006, Mehr News Agency
10. Iran May Reduce Use of Dollar, Tehran Papers Say, December 6, 2006, Bloomberg
11. http://www.presstv.ir/detail.aspx?id=4131§ionid=3510206
12. China shifts to euros for Iran oil, The Scotsman, 27 March 2007
13. IRI to stop pricing oil in dollars, IRIB News, 31 March 2007
14. Iran asks Japan to pay in yen, not dollars for oil purchases, Tokyo, 14 July 2007, IRNA
★ Clark, William R.: ''Petrodollar Warfare : Oil, Iraq and the Future of the Dollar'', New Society Publishers, 2005, ISBN 0-86571-514-9
★ [1] Hysteria Over Iran and A New Cold War with Russia: Peak Oil, Petrocurrencies, and the Emerging Multi-Polar World, December 2006
★ [2] Dollar Imperialism and Iran
★ PetroTalk Portal for petro related Articles, Discussion, Links and more
★ Iran oil bourse next week, Persian Journal, Apr 26, 2006
★ Iran takes on west's control of oil trading, The Guardian
★ The Real Reasons Why Iran is the Next Target: The Emerging Euro-denominated International Oil Marker
★ Petrodollar Warfare: Dollars, Euros and the Upcoming Iranian Oil Bourse
★ The Proposed Iranian Oil Bourse
★ Trading oil in euros – does it matter?
★ Will the Iranian Oil Bourse Threaten the Dollar?
★ Petrodollars and Nuclear Weapons Proliferation: Understanding the Planned Assault on Iran, Centre for Research on Globalization, February 10, 2006
★ The Iranian line in the sand
★ Petrodollar or Petroeuro? A new source of global conflict
★ The Iranian Threat: The Bomb or the Euro?
★ The Real Reasons Why Iran is the Next Target
★ Will Iran’s oil kill the U.S. dollar?
★ Strange ideas about the Iranian oil bourse (a counterpoint with countercounterpoints in comments...)
★ Why Iran's Oil Bourse can't break the Buck
Iran is planning to open a commodity exchange, variously referred to as the 'Iran Petroleum Exchange', 'International Oil Bourse' or 'Iranian Oil Bourse'. The acronym 'IOB' has been used as it can be interpreted as either "International Oil Bourse" or "Iranian Oil Bourse", but it has no official status. It would be a Petrobourse for petroleum, petrochemicals and gas in various non-dollar currencies, primarily the euro. If successful, it would establish a euro-based pricing mechanism for oil trading, or oil marker as it is called by traders.
The geographical location is expected to be the Persian Gulf island of Kish (which is designated by Iran as a free trade zone.)[1].
The exchange has not yet opened, having missed at least three announced opening dates.
| Contents |
| Background |
| Timeline |
| See also |
| Citations |
| Literature |
| External links |
Background
The three current oil markers are all US dollar denominated: North America's West Texas Intermediate crude (WTI), North Sea Brent Crude, and the UAE Dubai Crude. The two major oil bourses are the New York Mercantile Exchange (NYMEX) in New York City and the International Petroleum Exchange (IPE) in London. The proposed Iranian bourse would establish a fourth oil marker, denominated by the euro.
Timeline
The Iranian oil bourse, first reported in 2005, was to have a planned opening date of March 20, 2006 [2], which is the Iranian New Year, Nauroz. According to an April 2005 report, the Tehran Stock Exchange (TSE), the Wimpole Consortium and a private staff fund for retired petroleum workers will together form the consortium developing the exchange [3].
'January 2006' Chris Cook of the Wimpole Consortium referred to delays in the process due to the election to the presidency of Mahmoud Ahmadinejad and subsequent difficulty in appointing a new oil minister acceptable both to the president and parliament [4].
'March 2006' the Petroleum Minister of Iran, Kazem Vaziri Hamaneh, announced that due to "technical glitches", the Bourse launch was postponed, with no new date set. [5]. However, as of April 26 Iran had restarted its move to open the oil market, and Kazem announced the bourse was set to open the first week of May [6].
'May 2006' Minister of Economic Affairs and Finance Davud Danesh-Jafari said the Oil Ministry has a two-month deadline for presenting the Articles of Association of the Iranian Oil Bourse. Danesh-Jafari said that the euro had not yet been finalized as the legal tender of transactions in the oil bourse, and the final decision about that depends upon the Oil Ministry’s proposed IOB Articles of Association [7]
During the first phase of its implementation, the Iranian Oil Bourse plans to offer financial derivatives relating to crude oil.
'July 2006' a building has been purchased and the projected opening date was originally slated for September 2006. [8] On September 15, Oil Minister Kazem Vaziri-Hamaneh stated that all preparatory requirements had been arranged for launching the oil stock market in the country.[9] However, the launch has still not occurred.
'December 2006' Bloomberg cited two Iranian newspapers reporting Iran's Minister of Economy Davoud Danesh-Ja'fari Iran as wanting to cut US dollar based transactions to a minimum.[10]
'March 2007' Tehran based PRESS TV reported that the Iranian Embassy in Baghdad announced a shift of its major currency from dollars to euros. Iraqis traveling to Iran will pay for a visa in euros in line with other Iran Embassy locations. [11]
'March 2007' The Scotsman reported that China's state-run Zhuhai Zhenrong Corp, the biggest buyer of Iranian crude worldwide, began paying for its oil in euros late last year. Iranian officials have said for months that more than half the OPEC member's customers switched their payment currency away from the dollar as Tehran seeks to diversify its reserves, but news of the Zhenrong change is the first outside confirmation. Japan have also announced that they would be willing to switch to Yen from US Dollars.[12] Iran's central banker announced in March 2007 that Iran had cut its holding of U.S.-dollar assets to around 20% of its foreign reserves in response to U.S. hostility.[13]
'July 2007' Iran asked Japan to pay for its oil purchases in Japanese Yen.[14]
See also
★ Ministry of Petroleum of Iran
★ Petrobourse
★ Petroeuro
★ Petrodollar
★ Petroruble
★ Petrodollar warfare
★ Economy of Iran
★ Peak Oil
★ Dollar hegemony
Citations
1. Kish Oil Exchange Planned, Iran Daily, January 24, 2006
2. The Iranian line in the sand, Dan Crawford, The Republic (Vancouver), August 18 to 31, 2005
3. A star rises in the east, Stella Farrington, April 2005
4. Speaking freely: What the Iran 'nuclear issue' is really about, Chris Cook, January 21, 2006, Asia Times/energybulletin.net
5. A frenzied Persian new year, March 22, 2006, Asia Times
6. Iran oil bourse next week, April 26, 2006, Iranian.ws
7. Ministry to offer IOB Articles of Association in two months, May 19, 2006, Mehr News Agency
8. Iranian Journel, building has been purchased and new date is September, accessed July 6 2006
9. Iran's oil bourse to be launched, September 15, 2006, Mehr News Agency
10. Iran May Reduce Use of Dollar, Tehran Papers Say, December 6, 2006, Bloomberg
11. http://www.presstv.ir/detail.aspx?id=4131§ionid=3510206
12. China shifts to euros for Iran oil, The Scotsman, 27 March 2007
13. IRI to stop pricing oil in dollars, IRIB News, 31 March 2007
14. Iran asks Japan to pay in yen, not dollars for oil purchases, Tokyo, 14 July 2007, IRNA
Literature
★ Clark, William R.: ''Petrodollar Warfare : Oil, Iraq and the Future of the Dollar'', New Society Publishers, 2005, ISBN 0-86571-514-9
External links
★ [1] Hysteria Over Iran and A New Cold War with Russia: Peak Oil, Petrocurrencies, and the Emerging Multi-Polar World, December 2006
★ [2] Dollar Imperialism and Iran
★ PetroTalk Portal for petro related Articles, Discussion, Links and more
★ Iran oil bourse next week, Persian Journal, Apr 26, 2006
★ Iran takes on west's control of oil trading, The Guardian
★ The Real Reasons Why Iran is the Next Target: The Emerging Euro-denominated International Oil Marker
★ Petrodollar Warfare: Dollars, Euros and the Upcoming Iranian Oil Bourse
★ The Proposed Iranian Oil Bourse
★ Trading oil in euros – does it matter?
★ Will the Iranian Oil Bourse Threaten the Dollar?
★ Petrodollars and Nuclear Weapons Proliferation: Understanding the Planned Assault on Iran, Centre for Research on Globalization, February 10, 2006
★ The Iranian line in the sand
★ Petrodollar or Petroeuro? A new source of global conflict
★ The Iranian Threat: The Bomb or the Euro?
★ The Real Reasons Why Iran is the Next Target
★ Will Iran’s oil kill the U.S. dollar?
★ Strange ideas about the Iranian oil bourse (a counterpoint with countercounterpoints in comments...)
★ Why Iran's Oil Bourse can't break the Buck
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