Iran to start trading oil in Euros

[A Dashing Blade]

Here we go again, arn't you getting bored trotting out this drivel yet Backatcha.

"TEHRAN: Iran's oil ministry took a step toward establishing an oil trading market denominated in euros, rather than the US dollar, by granting a license for the bourse, state-run television reported yesterday.

Just who would trade on the market wasn't immediately apparent.

Iranian television did not mention trading firms or governments willing to market or purchase products on the bourse, nor did it say when it would open for business."

PS - anything about this issue on the Iran Oil Ministry web site (http://www.nioc.org) . . . . nope.

 

[zoltan]

Ive been as straight & sensible as I can on this & tried to get some facts across but we have a head/ brick wall scenario here.IM going to say goodbye now, I cant be arsed any more.If it gos head & is a success, then I accept my errors in judgement.
Good luck to anyone attempting to contribute to this cul de sac discussion.

 

[Backatcha Bandit]

Bye, then, Zoltan.

-
Here's some more 'drivel' for today, this time 'trotted out' by UPI:

Iran to require oil payments in euros

TEHRAN, May 15 (UPI) -- Iranian President Mahmoud Ahmadinejad announced Friday that in July Iran will abandon dollar payments for its oil and natural gas exports in favor of euros.

The move comes amid a standoff between Tehran and Washington over Iran's nuclear fuel enrichment program. The Bush administration insists the program is cover for a nuclear weapons program, a charge that Iran denies.

All current international oil transactions on the New York Mercantile Exchange and London's International Petroleum Exchange are priced in dollars.

Middleeastforex.com reported May 13 that Ahmadinejad announced the change Friday during a visit to Baku, Azerbaijan.

Many political observers see the decision as an attempt to pressure Washington, which is attempting to line up other U.N. Security Council members to act against Iran for its nuclear policies.

Iran has also proposed establishing a euro-based Iranian oil bourse to compete with NYMEX and the IPE. The proposal was first put forward in the beginning of the Third Development Plan (2000-2005), and began to receive serious attention in 2005.

Some observers speculate that the Iranian switch to euros could negatively affect the dollar, as many central banks from oil importing nations could choose to stock up their currency reserves with euros rather than dollars.

http://www.upi.com/Energy/view.php?StoryID=20060515-062946-1590r

-

Interesting article on the Pravda.ru frontpage at the moment:

Iraq, Iran and the end of petrodollar: The waning influence of the USA in the Asian century

An extract:

Many observers view the US neo-conservative clique and its agenda as a conspiracy. This article, however, is based on the premise that they are merely part of a larger equation of global systemic structures. This view is rooted in an understanding that vested interests representing the energy, electronics, weapons, and influential segments of the media and communications industries in the US are always entrenched in key sectors of government. These interests are concerned with maintaining their privileged position. And key elements of the US economic and political elite are now responding directly to changes in global conditions that have arisen since the end of the Cold War. This is not a conspiracy. It is only business as usual.

(It's just above an article (from yesterday) entitled: Iran's oil exchange to trade oil for euros, not dollars).

 

[Hanoipete]

yes fine, but so what? what is the point to this conversation? so what if iran sets up an exchange? you think its going to collapse the dollar?

oil is not locally traded, like gas for example, see ukraine and russia. oil is globally traded and its priced in dollars because it always has been.

so you price it in euros...right...and? it will be a local exchange for local people, iranians. it would be interesting but it will be inconsequential simply on a matter of scale...if it goes on fifty years then yes maybe it could alter the balance but if it showed any signs of being worth it then much bigger players (see china) would be in on the deal. iran produces less oil per day than BP and its run its oil industry into the floor with terrible planning and corruption...it now imports billions of $$ worth of products every year because they are so incompetant (at a high level that is. their staff are fine, its amazing their whole complex doesnt collapse)

as an idea: interesting. as an example to others: interesting. clout: next to nowt.

 

[Wolveryeti]

I'm not entirely sure I see the significance of Iran charging in euros as opposed to dollars either... Surely being given a price in your own currency is not, as some people have said, carte blanche to loads of free oil through printing more money, for the same reason that printing more money and distributing it to your citizens won't make them richer. The Iranis would realise their dollars aren't worth as much any more and would demand more per barrel.

I don't know too much about this whole issue, but if the dollar-euro exchange rate stands at a given rate, surely any oil selling nation would have to be an idiot to not sell to a nation offering a euro price per barrel that matched the dollar price. After all, it's them selling the oil, and thus dictating the terms.

 

[Backatcha Bandit]

On a related note:

The Associated Press/LONDON

Chavez may price oil exports in euros

MAY. 16 7:09 P.M. ET Venezuela's president Hugo Chavez said Tuesday that he would consider pricing his country's oil in euros instead of dollars in line with a similar declaration made by Iran.

Earlier this month Iran's state television reported the country's Oil Ministry granted a license for its first euro-denominated market.

"That is an interesting proposal made by the president of Iran," Chavez told Britain's Channel 4 news. "We are free to choose too between the dollar and the euro."

http://www.businessweek.com/ap/financialnews/D8HL5NS01.htm?campaign_id=apn_home_down&chan=db

 

[bigfish]

Dr. Bulent Gokay: Iraq, Iran and the end of petrodollar

The waning influence of the USA in the Asian century

http://english.pravda.ru/opinion/feedback/80289-petrodollar-0


Venezuela 'may swap oil currency': Venezuela has hinted it could price its oil exports in euros rather than US dollars, further weakening its links to the US.

http://news.bbc.co.uk/1/hi/business/4990302.stm

 

[davekriss]

A very serious decline in dollar hegemony on a 10-15 year view is inevitable (no matter who America bombs) driven for the most part by Chinese industrial expansion.

We are witnessed the start of this process last November(?) when, for the very first time, a Chinese interest rate change impacted other currencies.

And that is precisely why PNAC's Rebuilding America's Defenses lists China, too, as a candidate for regime change. The USG would like to export client-state "democracy" there, too.

On edit: Everyone should fear a dying hegemon that has amassed more military might than the next 38 nations combined. It will use that "might" while it still has it, deperately trying to hold onto its advantaged position.

 

[snadge]

watch this space, heard something very interesting, saudi are going to start trading in euros very soon.

 

[Azrael23]

source!?

 

[TAE]

It'll get really serious when they all start trading in yuan.

 

[snadge]

source!?

someone with connections to the king...........

 

[bigfish]

And that is precisely why PNAC's Rebuilding America's Defenses lists China, too, as a candidate for regime change. The USG would like to export client-state "democracy" there, too.

On edit: Everyone should fear a dying hegemon that has amassed more military might than the next 38 nations combined. It will use that "might" while it still has it, deperately trying to hold onto its advantaged position.

Even so, here come the neo-realists...

Deutsche Welle: You said Iran could use its influence in Iraq to make the situation for US troops even more difficult. What can the US do to improve the situation in Iraq?

Zbigniew Brzezinski: Basically I advocate a four point program. Firstly, the US should consult with the Iraqi government and set a time table for American departure, maybe within a year or so. Those Iraqi leaders who would agree are probably the Iraqi leaders who have the confidence that they could govern. Those who would say, "No, don’t leave!" are the ones who would leave when we leave -- so it tells you something about their capacity to govern.

Secondly, once we have reached an agreement with the Iraqis regarding a possible date, let's say a year from now, then we would jointly announce it as a joint decision.

Thirdly, upon our departure, the Iraqi government would convene a conference of adjoining Muslim states, who have an interest in stability in Iraq to help the Iraqi government -- maybe even with peacekeeping forces -- in consolidating stability. Although I do think that the Shias and the Kurds have the capacity to prevail upon the Sunnis to accommodate.

And then fourthly, upon American departure the US would convene a donors' conference to help rehabilitate Iraq; a little bit like the Bonn conference on Afghanistan.

DW: Wouldn’t a withdrawal weaken the US for years if not decades?

ZB: Why? I think the engagement in Iraq is weakening us. It is costly in blood, in money, in international antagonism, and it is an engagement that is not large enough to be militarily decisive but large enough to be militarily counterproductive in the sense that it keeps the violence going and mobilizes more hostility against us.

DW: A withdrawal could reduce the credibility of future threats against governments.

ZB: Do you think the present performance increases credibility?

http://www.dw-world.de/popups/popup_printcontent/0,,2025167,00.html

 

[Streathamite]

The waning influence of the USA in the Asian century

http://english.pravda.ru/opinion/feedback/80289-petrodollar-0


Venezuela 'may swap oil currency': Venezuela has hinted it could price its oil exports in euros rather than US dollars, further weakening its links to the US.

http://news.bbc.co.uk/1/hi/business/4990302.stm

but surely venezuela doing that is simply riosk minimisation more than anything else - and risk management is the cornerstone of effective money/asset management, yes?

 

[A Dashing Blade]

. . . and risk management is the cornerstone of effective money/asset management, yes?

Yep, "don't put all your eggs in one basket" and "run your winners and cut your losers".