Still working to recover. Please don't edit quite yet.

Difference between revisions of "Iranian Oil Bourse"

From Anarchopedia
Jump to: navigation, search
(noting implication: dollar hegemony would be broken)
(.Expanded article which was about a forthcoming event to include what happened)
 
(4 intermediate revisions by 4 users not shown)
Line 1: Line 1:
−
Iran is planning to open a [[commodity exchange]], under names variously referred to in English as '''Iran Petroleum Exchange''', '''International Oil Bourse''' or '''Iranian Oil Bourse''', for the express purpose of trading oil, [[petrochemical]]s and [[gasoline|gas]] in various non-[[dollar]] currencies, including [[euro]]s. The opening date was initially planned for [[March 20]], [[2006]]. If successful, this would establish a euro based pricing mechanism for oil trading, or 'oil marker' as it is called by [[trader]]s. This would be a major threat to [[dollar hegemony]] and perhaps trigger global [[monetary reform]] as major currencies like the [[yuan]] could buy oil without dollars. ''The [http://yahoogroups.com/group/gang8 gang8 yahoogroup] extensively discusses these issues and its archives are highly recommended for anyone interested].''
+
The '''Iranian Oil Bourse'''<ref name="daneshjafari_islamic_rev" /> (بورس نفت ایران}}) '''International Oil Bourse''',<ref name="kfzo_says_iob">{{cite web| last =| first =| authorlink =| coauthors =| title =KFZO MD: Investment in oil and gas in Kish is competitive and justified  | work =| publisher = [[Kish Island|Kish]] Free Zone Organization| date = 2008-02-09 | url =http://kish.ir/DesktopModules/News/NewsView.aspx?TabID=0&Site=DouranPortal&Lang=en-US&ItemID=2407&mid=13946&wVersion=Staging
 +
|format =| doi =| accessdate = 2008-02-10}}</ref> '''Iran Petroleum Exchange''' or '''Oil Bourse in Kish'''<ref name="kishdotir_iob_opening" /> (IOB; the official English language name is unclear) is a [[Commodities exchange|commodity exchange]] which opened on February 17, 2008.<ref name="irna_first_phase_opening" /><ref name="presstv_opening" /><ref name="presstv_iob_ruble" /><ref name="kishdotir_iob_opening" /> It was created by cooperation between [[Iran]]ian ministries, the [[Iran Mercantile Exchange]] and other state and private institutions. The IOB is intended as an oil bourse (trader in) oil, for [[petroleum]], [[petrochemical]]s and [[petrol]] / [[gasoline]] in various currencies, primarily the [[euro]] and [[Iranian rial]] and a basket of other major currencies apart from the [[United States dollar]]. The geographical location is at the [[Persian Gulf]] island of [[Kish, Iran|Kish]] which is designated by Iran as a [[free trade zone]].<ref name="irandailykish">[http://www.iran-daily.com/1383/2199/html/economy.htm  Kish Oil Exchange Planned], [[Iran Daily]], January 24, 2006</ref>
 +
 
 +
During 2007, Iran asked its petroleum customers to pay in non US dollar currencies. By December 8, 2007, Iran reported to have converted all of its oil export payments to non-dollar currencies.<ref>[http://uk.reuters.com/article/oilRpt/idUKDAH83366720071208 Iran stops selling oil in U.S. dollars -report], [[Reuters]], December 7, 2007</ref>
 +
The Kish Bourse was officially opened in a videoconference ceremony on February 17, 2008, despite last minute disruptions to the internet services to the Persian Gulf regions. Currently the Kish Bourse is only trading in oil-derived products, generally those used as feedstock for the plastics and pharmaceutical industries. However, officially published statements by Iranian oil minister Gholamhossein Nozari indicate that the second phase, to establish trading in crude oil directly, which has been suggested might one day perhaps create a "Caspian Crude" benchmark price analogous to [[Brent Crude]] or [[West Texas Intermediate|WTI]] will only be started after the Bourse has demonstrated a reasonable period of trouble-free running.<ref>[http://www.kuwaittimes.net/read_news.php?newsid=NTQ4MTQ0NjA1 Iran launches oil products bourse » Kuwait Times Website<!-- Bot generated title -->]</ref>
  
−
The acronym IOB has been used as it can be interpreted as either '''International Oil Bourse''' or '''Iranian Oil Bourse''', but has no official status.
 
  
 
==Background==
 
==Background==
−
In 2003, Iran started trading with its European and Asian partners using the euro.  
+
''See also Wikipedia articles: Iran Mercantile Exchange, National Iranian Oil Company, National Iranian Petrochemical Company''
 +
The three current [[price maker|oil markers]] are all US dollar denominated: North America's West Texas Intermediate crude (WTI), [[North Sea]] Brent Crude, and the Dubai Mercantile Exchange Dubai Crude. The two major oil bourses are the New York Mercantile Exchange (NYMEX) in [[New York City]] and the IntercontinentalExchange (ICE) in the International Petroleum Exchange in [[London]] & [[Atlanta]]. As the Oil Bourse in Kish is developed through successive stages, the plan is to establish a [[Petrobourse]] as a fourth oil market, denominated by the [[Iranian rial]], the [[euro]] and other major currencies.
  
−
The three current [[oil marker]]s (pricing mechanism for oil) are US dollar denominated, which include the [[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]] (NYME) in [[New York City]] and the [[International Petroleum Exchange]] (IPE) in [[London]].  
+
[[Iran]] sits on some of the largest oil and gas reserves in the world.<ref>[http://www.upi.com/Science_News/Resource-Wars/2009/10/27/Iran-launches-international-oil-exchange/UPI-78961256658262 UPI.com]</ref> The bourse will offer 40 kinds of oil products. Iran produces over 25 percent of the total output of [[National Iranian Petrochemical Company|petrochemical products]] in the Middle East. At least 30 domestic companies and 20 foreign firms are active in the oil and petrochemical industries on [[Kish Island]].<ref>[http://www.presstv.com/detail.aspx?id=109697&sectionid=351020103 PressTV.com]</ref>
  
−
The '''Iranian Oil Bourse''' would establish a fourth 'oil marker', denominated by the euro.
 
  
−
==Planning==
+
==Operations==
−
The '''Iranian Oil Bourse''' was reported in the media to have a planned opening date of [[March 20]], [[2006]] {{ref label|republicvancouver|1|a}}, at the Iranian New Year, [[Nauroz]]. The geographical location is expected to be the island of [[Kish, Iran|Kish]] {{ref label|irandailykish|2|b}}.
+
''See also Wikipedia articles: Foreign Direct Investment in Iran, Tehran Stock Exchange, Privatization in Iran, Banking in Iran''
  
−
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 '''Iran Petroleum Exchange'''{{ref label|opencapital|3|c}}. In January [[2006]], [[Chris Cook]] of the [[Wimpole Consortium]] referred to delays in the process due to the [[Iranian_presidential_election%2C_2005|election to the presidency]] of [[Mahmoud Ahmadinejad]] and subsequent difficulty of appointing a new oil minister acceptable both to the president and parliament{{ref label|atimes|4|d}}.
+
At the time of the Oil Bourse's opening on Kish, the Director of the Kish Stock Exchange, Hossein Allahdadi, said that there "are no limitations imposed on transactions by foreign shareholders at the Oil Bourse in Kish".<ref name="kishdotir_iob_opening" />
−
===Delayed opening===
+
 
−
Due to  "technical glitches", according to the Ministry of Petroleum, the launch was postponed, with no new date set. {{ref label|atimesfrenzy|5|e}}  
+
As of 2009, the Oil Bourse was a [[spot market]] for [[National Iranian Petrochemical Company|petrochemical products]] mainly, with plans to introduce [[Islamic banking|sharia]]-compliant [[futures contracts]] for crude oil and petrochemicals in the future, during the second phase. Trading takes place through licensed private brokers registered with the ''[[Tehran Stock Exchange#Structure|Securities and Exchange Organization of Iran]]''. Any company, domestic or foreign, can list their products on the exchange for as long as they meet the [[listing criterias]].
 +
 
 +
Global standards for Islamic [[derivative (finance)|derivatives]] were set in 2010. The “[http://www.isda.org/media/press/2010/press030110.html Hedging Master Agreement]” provides a structure under which institutions can trade derivatives such as profit-rate and [[currency swap]]s.<ref>[http://www.iran-daily.com/1388/12/11/MainPaper/3630/Page/5/Index.htm Iran-Daily.com]</ref>
 +
 
 +
 
 +
==Timeline==
 +
The Iranian oil bourse, first reported in 2005, initially had a widely publicised opening date of March 20, 2006.<ref name="republicvancouver">[http://republic-news.org/archive/120-repub/120_crawford.htm The Iranian line in the sand], Dan Crawford, The Republic ([[Vancouver]]), August 18 to 31, 2005</ref> 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 were to form a consortium developing the exchange.<ref name="opencapital">[http://www.opencapital.net/papers/Iranexchange.pdf A star rises in the east], Stella Farrington, April 2005</ref>
 +
 
 +
'''January 2006''' [[Chris Cook (oil executive)|Chris Cook]] of the Wimpole Consortium referred to delays in the process due to the [[Iranian presidential election, 2005|election to the presidency]] of [[Mahmoud Ahmadinejad]] and subsequent difficulty in appointing a new oil minister acceptable both to the president and parliament.<ref name="atimes">[http://www.atimes.com/atimes/Middle_East/HA21Ak01.html Speaking freely: What the Iran 'nuclear issue' is really about], [[Chris Cook (oil executive)|Chris Cook]], January 21, 2006, [[Asia Times]]/energybulletin.net</ref>
 +
 
 +
'''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.<ref name="atimesfrenzy">[http://www.atimes.com/atimes/Middle_East/HC22Ak01.html A frenzied Persian new year], March 22, 2006, [[Asia Times]]</ref> 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.<ref name="iranianwsnextweek">[http://www.iranian.ws/iran_news/publish/article_15158.shtml Iran oil bourse next week], April 26, 2006, [[Iranian.ws]]</ref>
 +
 
 +
'''May 2006''' Minister of Economic Affairs and Finance [[Davoud Danesh-Jafari]] said the Oil Ministry has a two-month deadline for presenting the [[Articles of Association (law)|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.<ref>[http://www.mehrnews.com/en/NewsDetail.aspx?NewsID=328187 Ministry to offer IOB Articles of Association in two months], May 19, 2006, [[Mehr News Agency]]</ref>
 +
 
 +
'''July 2006''' a building has been purchased and the projected opening date was originally slated for September 2006.<ref>[http://www.iranian.ws/iran_news/publish/article_16543.shtml Iranian Journel], building has been purchased and new date is September, accessed July 6 2006</ref> 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.<ref>[http://www.payvand.com/news/06/sep/1182.html Iran's oil bourse to be launched], September 15, 2006, [[Mehr News Agency]]</ref> 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.<ref>[http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a5EsYUqL5LLs Iran May Reduce Use of Dollar, Tehran Papers Say], December 6, 2006, [[Bloomberg L.P.|Bloomberg]]</ref>
 +
 
 +
'''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.<ref>[http://www.presstv.ir/detail.aspx?id=4131&sectionid=3510206 Press TV - Iran's Baghdad embassy shifts to euro<!-- Bot generated title -->]</ref>
 +
 
 +
'''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 has also announced that it would be willing to switch to Yen from US Dollars.<ref>[http://business.scotsman.com/latest.cfm?id=474362007 China shifts to euros for Iran oil], [[The Scotsman]], 27 March 2007</ref> [[Bank Markazi Iran|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.<ref>[http://www.iribnews.ir/Full_en.asp?news_id=234177&n=33 IRI to stop pricing oil in dollars], IRIB News, 31 March 2007</ref>
 +
 
 +
'''July 2007''' Iran asked Japan to pay for its oil purchases in Japanese Yen.<ref>[http://www2.irna.ir/en/news/view/menu-237/0707145934183804.htm Iran asks Japan to pay in yen, not dollars for oil purchases], Tokyo, 14 July 2007, IRNA</ref>
 +
 
 +
'''September 2007''' Japan's Nippon Oil has agreed to buy Iranian oil using yen.<ref>[http://www.upi.com/International_Security/Energy/Analysis/2007/09/10/analysis_iran_moves_to_ditch_us_dollar/6990/ UPI: "Analysis: Iran moves to ditch U.S. dollar"]</ref>
 +
 
 +
'''December 2007''' Iran stops accepting U.S. dollars for oil.<ref>[http://en.rian.ru/world/20071208/91488137.html RIA Novosti: Iran stops accepting U.S. dollars for oil. TEHRAN, December 8, 2007]</ref>
 +
 
 +
'''January 2008''' Iran's Finance Minister Davoud Danesh-Jafari told reporters that the bourse will be opened during the anniversary of the [[Islamic Revolution]] (February 1-11).<ref name="daneshjafari_islamic_rev">[http://www.presstv.ir/detail.aspx?id=37468&sectionid=351020103 Iran Oil Bourse to deal blow to dollar]</ref>
 +
 
 +
'''February 2008''' On February 4, the [[List of Iranian officials|Iranian]] [[Cabinet (government)|Cabinet]] approved the creation of the oil bourse in two stages - first a raw oil exchange and secondly an oil byproducts exchange. The Ministry of Finance and Economics, the [[Ministry of Petroleum of Iran|Oil Ministry]], the [[Ministry of Foreign Affairs (Iran)|Ministry of Foreign Affairs]], and the [[Central Bank of the Islamic Republic of Iran|Central Bank of Iran]] are required to create a workgroup to coordinate the project, and the [[Iran Commodities Bourse Company]] is given the task of carrying out the project. The communique from the Cabinet states that the "[[Ministry of Economic Affairs and Finance (Iran)|Ministry of Finance and Economics Affairs]] is required to take measures in making the petrochemical byproducts bourse operational by the end of February 2008."<ref name="cabinet_approves_iob">{{cite web| last =| first =| authorlink =| coauthors =| title =The cabinet approves the opening of the International Oil Bourse | work =| publisher = [[Kish Island|Kish]] Free Zone Organization| date = 2008-02-04 | url =http://www.kish.ir/DesktopModules/News/NewsView.aspx?TabID=0&Site=DouranPortal&Lang=en-US&ItemID=2357&mid=13947&wVersion=Staging |format =| doi =| accessdate = 2008-02-07}}</ref>
 +
 
 +
===Opening===
 +
'''February 17, 2008:''' The Iranian Oil Bourse was inaugurated in a video conference ceremony from the capital [[Tehran]] attended by ministers of oil, finance and economic affairs as well as chairman of [[Tehran Stock Exchange|Iran's Stock Exchange]] and a number of other officials and financial experts.<ref name="irna_first_phase_opening">[http://www2.irna.ir/en/news/view/line-203/0802173565111734.htm 1st phase of Iran oil stock inaugurated on Kish Island, IRNA Reports, Feb. 17, 2008]</ref>
 +
The transactions will be made in [[Iranian rial]], [[yen]], [[euro]] and other major currencies.<ref name="presstv_opening">[http://www.presstv.com/Detail.aspx?id=43476&sectionid=351020102 Oil bourse opens in Iran's Kish Island] Retrieved 17 February 2008</ref> The Iranian Oil Bourse will probably accept [[Russian ruble]] as well.<ref name="presstv_iob_ruble">[http://www.presstv.ir/detail.aspx?id=43254&sectionid=351020103 Iran Oil Bourse may use Russian ruble , Press TV Reports, Feb. 15, 2008]</ref>
 +
The first transaction of the IOB took place at 9:30 the following morning, when 2200 [[tonne]]s of [[low density polyethylene]] (LD-PE), held in 100 tonne cases, were traded.<ref name="kishdotir_iob_opening">{{cite web| last =| first =| authorlink =| coauthors =| title =Kish Stock Exchange Director: There are no limitations on transactions by foreigners at the Oil Bourse | work =| publisher = [[Kish Island|Kish]] Free Zone Organization| date =2008-02-18| url =http://www.kish.ir/DesktopModules/News/NewsView.aspx?TabID=0&Site=DouranPortal&Lang=en-US&ItemID=2465&mid=13947 |format =| doi =| accessdate =2008-02-19 }}</ref>
 +
 
 +
'''November 2008:''' According to Chairman of Board of Directors for Iranian Oil Bourse Mehdi Karbasian ever since the launch of the first phase of the bourse, transactions worth over $1.5 billion have been made on different oil and petrochemical products.<ref>[http://www.iran-daily.com/1387/3276/html/national.htm Iran-Daily.com]</ref>
 +
 
 +
'''December 2008:''' Iran is permitting local private firms and not just foreign companies to enter the trade in Iranian crude. One organization that could now trade was [[Bonyad-e Mostazafen va Janbazan]] - a body that helps the underprivileged and war disabled, or a charitable trust with business interests.<ref>[http://english.farsnews.com/newstext.php?nn=8709210826 Farsnews.com]</ref>
 +
 
 +
'''October 2009:''' [[IRNA]] reported that "[[National Iranian Petrochemical Company|National Petrochemical Company]]'s Managing Director Adel Nejad-Salim said in the opening ceremony that all petrochemical products will be gradually offered on the market."<ref>[http://www.tehrantimes.com/index_View.asp?code=206503 TehranTimes.com]</ref>
 +
In the first phase, only petrochemical products such as polyethylene and methanol were traded on a spot basis and in [[Iranian Rial]]. However, with the completion of the second phase, crude and by-products of oil can also be traded on the exchange in both [[Iranian Rial]] and [[Euro]].
 +
 
 +
==Petrochemical Exporting Countries Forum (PECF)==
 +
''See also Wikipedia articles: Gas Exporting Countries Forum''
 +
 
 +
Iran has proposed the creation of a Petrochemical Exporting Countries Forum (PECF) which aims at financial and technological cooperation among members, as well as product pricing and policy making in production issues. According to the Managing Director of [[National Iranian Petrochemical Company]] (NIPC), Abdolhossein Bayat, [[Iran]], [[Saudi Arabia]], [[UAE]], [[Russia]], [[Qatar]], and [[Turkey]] are potential members of PECF.<ref>http://www.presstv.ir/detail.aspx?id=137666&sectionid=351020103</ref>
 +
 
 +
==2008 submarine cable disruption==
 +
''See also Wikipedia articles: Communications in Iran''
 +
 
 +
It has been suggested that [[2008 submarine cable disruption#Conspiracy theories|2008 submarine cable disruption]] was connected with the launch of Iranian oil bourse and that the [[Communications in Iran#Internet|internet connection of Iran]] was being targeted to stop the launch of Iranian oil bourse.<ref>http://www.oil-price.net/en/articles/iranian-oil-bourse-opening.php</ref><ref>http://jus394globalrain.wordpress.com/category/undersea-internet-cables-mysteriously-cut/</ref><ref>http://pkpolitics.com/2008/02/04/forth-cable-cut-iranian-oil-bourse-sabotaged/</ref><ref>http://www.dailytech.com/Sabotage+Still+Not+Ruled+Out+in+Undersea+Cable+Cuts/article10779.htm</ref><ref>http://www.wired.com/threatlevel/2008/02/who-cut-the-cab/</ref>
  
 
== See also ==
 
== See also ==
−
* [[Petroeuro]]
+
* [[Petrodollar warfare]]
−
* [[Petrodollar]]
+
 
−
<!--* [[Petrodollar warfare]]
+
Wikipedia
−
-->
+
* [[Wikipedia:Iran Mercantile Exchange]]
−
<!--== Literature ==
+
* [[Wikipedia:Energy in Iran]]
−
* Clark, William R.: ''Petrodollar Warfare : Oil, Iraq and the Future of the Dollar'', New Society Publishers, 2005, ISBN 0865715149-->
+
* [[Wikipedia:Petroleum industry in Iran]]
 +
* [[Wikipedia:Ministry of Petroleum of Iran]]
 +
* [[Wikipedia:National Iranian Petrochemical Company]]
 +
* [[Wikipedia:Petrobourse]]
 +
* [[Wikipedia:Petrodollar]]
 +
 
 +
== Doomsday scenarios ==
 +
Before its opening, it was asserted by certain market speculators<ref>[http://yahoogroups.com/group/gang8 gang8 yahoogroup]</ref> that attempted to infiltrate Anarchopedia that if successful, it would establish a euro based pricing mechanism for oil trading, or 'oil marker' as it is called by [[trader]]s, and that this would be a major threat to [[dollar hegemony]] and perhaps trigger global [[monetary reform]] as major currencies like the [[yuan]] could buy oil without dollars. (Noooooes!)
 +
 
  
 
==Citations==
 
==Citations==
−
# {{note label|republicvancouver|1|a}} [http://republic-news.org/archive/120-repub/120_crawford.htm The Iranian line in the sand], Dan Crawford, The Republic ([[Vancouver]]), [[August 18]] to 31, [[2005]]
+
{{reflist|2}}
−
# {{note label|irandailykish|2|b}} [http://www.iran-daily.com/1383/2199/html/economy.htm  Kish Oil Exchange Planned], [[Iran Daily]], [[January 24]], [[2006]]
+
 
−
# {{note label|opencapital|3|c}} [http://www.opencapital.net/papers/Iranexchange.pdf A star rises in the east], Stella Farrington, April [[2005]]
+
==Citations==
−
# {{note label|atimes|4|d}} [http://www.atimes.com/atimes/Middle_East/HA21Ak01.html Speaking freely: What the Iran 'nuclear issue' is really about], [[Chris Cook]], [[January 21]], [[2006]], [[Asia Times]]/energybulletin.net
+
# {{-|1|a}} [http://republic-news.org/archive/120-repub/120_crawford.htm The Iranian line in the sand], Dan Crawford, The Republic ([[Vancouver]]), [[August 18]] to 31, [[2005]]
−
# {{note label|atimesfrenzy|5|e}} [http://www.atimes.com/atimes/Middle_East/HC22Ak01.html A frenzied Persian new year], [[March 22]], [[2006]], [[Asia Times]]
+
# {{-|irandailykish|2|b}} [http://www.iran-daily.com/1383/2199/html/economy.htm  Kish Oil Exchange Planned], [[Iran Daily]], [[January 24]], [[2006]]
 +
# {{-|opencapital|3|c}} [http://www.opencapital.net/papers/Iranexchange.pdf A star rises in the east], Stella Farrington, April [[2005]]
 +
# {{-|atimes|4|d}} [http://www.atimes.com/atimes/Middle_East/HA21Ak01.html Speaking freely: What the Iran 'nuclear issue' is really about], [[Chris Cook]], [[January 21]], [[2006]], [[Asia Times]]/energybulletin.net
 +
# {{-|atimesfrenzy|5|e}} [http://www.atimes.com/atimes/Middle_East/HC22Ak01.html A frenzied Persian new year], [[March 22]], [[2006]], [[Asia Times]]
 +
 
 +
 
 +
== Literature ==
 +
* Clark, William R.: "Petrodollar Warfare: Oil, Iraq and the Future of the Dollar", ''[[New Society Publishers]]'', 2005, ISBN 0-86571-514-9
 +
 
 +
 
 +
== 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 ==
 
== External links ==
−
* [http://business.guardian.co.uk/story/0,3604,1239644,00.html Iran takes on west's control of oil trading], The Guardian
+
* [http://www.presstv.ir/detail.aspx?id=37468&sectionid=351020103 Iran Oil Bourse to deal blow to dollar], January 2008 
 +
* [http://www.petrodollarwarfare.com/PDFs/Hysteria_Over_Iran_and_a_New_Cold_War_with_Russia.pdf Hysteria Over Iran and A New Cold War with Russia: Peak Oil, Petrocurrencies, and the Emerging Multi-Polar World], December 2006
 +
* [http://www.petrotalk.com PetroTalk] Portal for petro related Articles, Discussion, Links and more
 +
* [http://www.iranian.ws/iran_news/publish/article_15158.shtml Iran oil bourse next week], Persian Journal, April 26, 2006
 +
* [http://business.guardian.co.uk/story/0,3604,1239644,00.html Iran takes on west's control of oil trading], ''[[The Guardian]]''
 
* [http://www.altpr.org/modules.php?op=modload&name=News&file=article&sid=355&mode=thread&order=0&thold=0 The Real Reasons Why Iran is the Next Target: The Emerging Euro-denominated International Oil Marker]
 
* [http://www.altpr.org/modules.php?op=modload&name=News&file=article&sid=355&mode=thread&order=0&thold=0 The Real Reasons Why Iran is the Next Target: The Emerging Euro-denominated International Oil Marker]
 
* [http://www.energybulletin.net/7707.html Petrodollar Warfare: Dollars, Euros and the Upcoming Iranian Oil Bourse]
 
* [http://www.energybulletin.net/7707.html Petrodollar Warfare: Dollars, Euros and the Upcoming Iranian Oil Bourse]
Line 39: Line 117:
 
* [http://www.energybulletin.net/12463.html Trading oil in euros – does it matter?]
 
* [http://www.energybulletin.net/12463.html Trading oil in euros – does it matter?]
 
* [http://www.thetrumpet.com/index.php?page=article&id=1704 Will the Iranian Oil Bourse Threaten the Dollar?]
 
* [http://www.thetrumpet.com/index.php?page=article&id=1704 Will the Iranian Oil Bourse Threaten the Dollar?]
−
* [http://www.globalresearch.ca/index.php?context=viewArticle&code=KEE20060210&articleId=1936 Petrodollars and Nuclear Weapons Proliferation: Understanding the Planned Assault on Iran], [[Centre for Research on Globalization]], February 10, 2006
 
 
* [http://www.energybulletin.net/8379.html The Iranian line in the sand]
 
* [http://www.energybulletin.net/8379.html The Iranian line in the sand]
 
* [http://www.feasta.org/documents/review2/nunan.htm Petrodollar or Petroeuro? A new source of global conflict]
 
* [http://www.feasta.org/documents/review2/nunan.htm Petrodollar or Petroeuro? A new source of global conflict]
 
* [http://www.serendipity.li/wot/akleh.htm The Iranian Threat: The Bomb or the Euro?]
 
* [http://www.serendipity.li/wot/akleh.htm The Iranian Threat: The Bomb or the Euro?]
−
* [http://www.projectcensored.org/publications/2004/19.html U.S. Dollar vs. the Euro: Another Reason for the Invasion of Iraq]
 
 
* [http://www.globalresearch.ca/articles/CLA410A.html The Real Reasons Why Iran is the Next Target]
 
* [http://www.globalresearch.ca/articles/CLA410A.html The Real Reasons Why Iran is the Next Target]
−
* [http://www.aljazeera.com/cgi-bin/review/article_full_story.asp?service_ID=9752 Will Iran’s oil kill the U.S. dollar?]
+
* [http://www.econbrowser.com/archives/2006/01/strange_ideas_a.html Strange ideas about the Iranian oil bourse]
−
* [http://www.econbrowser.com/archives/2006/01/strange_ideas_a.html Strange ideas about the Iranian oil bourse] (a counterpoint with countercounterpoints in comments...)
+
* [http://www.oil-price.net/en/articles/iranian-oil-bourse-opening.php Iranian Oil Bourse opening] IOB will open amid hurdles
−
*[http://www.engdahl.oilgeopolitics.net/Geopolitics/Iran_Oil_Bourse/iran_oil_bourse.html Why Iran's Oil Bourse can't break the Buck]
+
* [http://www.youtube.com/watch?v=ZfumcC_hjRk Iranian Oil Bourse - Part I] [http://www.youtube.com/watch?v=PpyljCOiN-c Part II] [http://www.youtube.com/watch?v=qbAqF0u_Uzw Part III] (Documentary) on [[Youtube.com]]
  
 
{{wikipedia|Iranian Oil Bourse}}
 
{{wikipedia|Iranian Oil Bourse}}
−
 
 
[[Category:Commodity exchanges]]
 
[[Category:Commodity exchanges]]
 +
[[Category:Companies established in 2008]]
 +
[[Category:2008 establishments in Iran]]

Latest revision as of 22:42, 19 December 2010

The Iranian Oil Bourse[1] (بورس نفت ایران}}) International Oil Bourse,[2] Iran Petroleum Exchange or Oil Bourse in Kish[3] (IOB; the official English language name is unclear) is a commodity exchange which opened on February 17, 2008.[4][5][6][3] It was created by cooperation between Iranian ministries, the Iran Mercantile Exchange and other state and private institutions. The IOB is intended as an oil bourse (trader in) oil, for petroleum, petrochemicals and petrol / gasoline in various currencies, primarily the euro and Iranian rial and a basket of other major currencies apart from the United States dollar. The geographical location is at the Persian Gulf island of Kish which is designated by Iran as a free trade zone.[7]

During 2007, Iran asked its petroleum customers to pay in non US dollar currencies. By December 8, 2007, Iran reported to have converted all of its oil export payments to non-dollar currencies.[8] The Kish Bourse was officially opened in a videoconference ceremony on February 17, 2008, despite last minute disruptions to the internet services to the Persian Gulf regions. Currently the Kish Bourse is only trading in oil-derived products, generally those used as feedstock for the plastics and pharmaceutical industries. However, officially published statements by Iranian oil minister Gholamhossein Nozari indicate that the second phase, to establish trading in crude oil directly, which has been suggested might one day perhaps create a "Caspian Crude" benchmark price analogous to Brent Crude or WTI will only be started after the Bourse has demonstrated a reasonable period of trouble-free running.[9]


Background[edit]

See also Wikipedia articles: Iran Mercantile Exchange, National Iranian Oil Company, National Iranian Petrochemical Company The three current oil markers are all US dollar denominated: North America's West Texas Intermediate crude (WTI), North Sea Brent Crude, and the Dubai Mercantile Exchange Dubai Crude. The two major oil bourses are the New York Mercantile Exchange (NYMEX) in New York City and the IntercontinentalExchange (ICE) in the International Petroleum Exchange in London & Atlanta. As the Oil Bourse in Kish is developed through successive stages, the plan is to establish a Petrobourse as a fourth oil market, denominated by the Iranian rial, the euro and other major currencies.

Iran sits on some of the largest oil and gas reserves in the world.[10] The bourse will offer 40 kinds of oil products. Iran produces over 25 percent of the total output of petrochemical products in the Middle East. At least 30 domestic companies and 20 foreign firms are active in the oil and petrochemical industries on Kish Island.[11]


Operations[edit]

See also Wikipedia articles: Foreign Direct Investment in Iran, Tehran Stock Exchange, Privatization in Iran, Banking in Iran

At the time of the Oil Bourse's opening on Kish, the Director of the Kish Stock Exchange, Hossein Allahdadi, said that there "are no limitations imposed on transactions by foreign shareholders at the Oil Bourse in Kish".[3]

As of 2009, the Oil Bourse was a spot market for petrochemical products mainly, with plans to introduce sharia-compliant futures contracts for crude oil and petrochemicals in the future, during the second phase. Trading takes place through licensed private brokers registered with the Securities and Exchange Organization of Iran. Any company, domestic or foreign, can list their products on the exchange for as long as they meet the listing criterias.

Global standards for Islamic derivatives were set in 2010. The “Hedging Master Agreement” provides a structure under which institutions can trade derivatives such as profit-rate and currency swaps.[12]


Timeline[edit]

The Iranian oil bourse, first reported in 2005, initially had a widely publicised opening date of March 20, 2006.[13] 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 were to form a consortium developing the exchange.[14]

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.[15]

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.[16] 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.[17]

May 2006 Minister of Economic Affairs and Finance Davoud 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.[18]

July 2006 a building has been purchased and the projected opening date was originally slated for September 2006.[19] 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.[20] 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.[21]

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.[22]

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 has also announced that it would be willing to switch to Yen from US Dollars.[23] 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.[24]

July 2007 Iran asked Japan to pay for its oil purchases in Japanese Yen.[25]

September 2007 Japan's Nippon Oil has agreed to buy Iranian oil using yen.[26]

December 2007 Iran stops accepting U.S. dollars for oil.[27]

January 2008 Iran's Finance Minister Davoud Danesh-Jafari told reporters that the bourse will be opened during the anniversary of the Islamic Revolution (February 1-11).[1]

February 2008 On February 4, the Iranian Cabinet approved the creation of the oil bourse in two stages - first a raw oil exchange and secondly an oil byproducts exchange. The Ministry of Finance and Economics, the Oil Ministry, the Ministry of Foreign Affairs, and the Central Bank of Iran are required to create a workgroup to coordinate the project, and the Iran Commodities Bourse Company is given the task of carrying out the project. The communique from the Cabinet states that the "Ministry of Finance and Economics Affairs is required to take measures in making the petrochemical byproducts bourse operational by the end of February 2008."[28]

Opening[edit]

February 17, 2008: The Iranian Oil Bourse was inaugurated in a video conference ceremony from the capital Tehran attended by ministers of oil, finance and economic affairs as well as chairman of Iran's Stock Exchange and a number of other officials and financial experts.[4] The transactions will be made in Iranian rial, yen, euro and other major currencies.[5] The Iranian Oil Bourse will probably accept Russian ruble as well.[6] The first transaction of the IOB took place at 9:30 the following morning, when 2200 tonnes of low density polyethylene (LD-PE), held in 100 tonne cases, were traded.[3]

November 2008: According to Chairman of Board of Directors for Iranian Oil Bourse Mehdi Karbasian ever since the launch of the first phase of the bourse, transactions worth over $1.5 billion have been made on different oil and petrochemical products.[29]

December 2008: Iran is permitting local private firms and not just foreign companies to enter the trade in Iranian crude. One organization that could now trade was Bonyad-e Mostazafen va Janbazan - a body that helps the underprivileged and war disabled, or a charitable trust with business interests.[30]

October 2009: IRNA reported that "National Petrochemical Company's Managing Director Adel Nejad-Salim said in the opening ceremony that all petrochemical products will be gradually offered on the market."[31] In the first phase, only petrochemical products such as polyethylene and methanol were traded on a spot basis and in Iranian Rial. However, with the completion of the second phase, crude and by-products of oil can also be traded on the exchange in both Iranian Rial and Euro.

Petrochemical Exporting Countries Forum (PECF)[edit]

See also Wikipedia articles: Gas Exporting Countries Forum

Iran has proposed the creation of a Petrochemical Exporting Countries Forum (PECF) which aims at financial and technological cooperation among members, as well as product pricing and policy making in production issues. According to the Managing Director of National Iranian Petrochemical Company (NIPC), Abdolhossein Bayat, Iran, Saudi Arabia, UAE, Russia, Qatar, and Turkey are potential members of PECF.[32]

2008 submarine cable disruption[edit]

See also Wikipedia articles: Communications in Iran

It has been suggested that 2008 submarine cable disruption was connected with the launch of Iranian oil bourse and that the internet connection of Iran was being targeted to stop the launch of Iranian oil bourse.[33][34][35][36][37]

See also[edit]

Wikipedia

Doomsday scenarios[edit]

Before its opening, it was asserted by certain market speculators[38] that attempted to infiltrate Anarchopedia that if successful, it would establish a euro based pricing mechanism for oil trading, or 'oil marker' as it is called by traders, and that this would be a major threat to dollar hegemony and perhaps trigger global monetary reform as major currencies like the yuan could buy oil without dollars. (Noooooes!)


Citations[edit]

  1. ↑ 1.0 1.1 Iran Oil Bourse to deal blow to dollar
  2. ↑ KFZO MD: Investment in oil and gas in Kish is competitive and justified. Kish Free Zone Organization. URL accessed on 2008-02-10.
  3. ↑ 3.0 3.1 3.2 3.3 Kish Stock Exchange Director: There are no limitations on transactions by foreigners at the Oil Bourse. Kish Free Zone Organization. URL accessed on 2008-02-19.
  4. ↑ 4.0 4.1 1st phase of Iran oil stock inaugurated on Kish Island, IRNA Reports, Feb. 17, 2008
  5. ↑ 5.0 5.1 Oil bourse opens in Iran's Kish Island Retrieved 17 February 2008
  6. ↑ 6.0 6.1 Iran Oil Bourse may use Russian ruble , Press TV Reports, Feb. 15, 2008
  7. ↑ Kish Oil Exchange Planned, Iran Daily, January 24, 2006
  8. ↑ Iran stops selling oil in U.S. dollars -report, Reuters, December 7, 2007
  9. ↑ Iran launches oil products bourse » Kuwait Times Website
  10. ↑ UPI.com
  11. ↑ PressTV.com
  12. ↑ Iran-Daily.com
  13. ↑ The Iranian line in the sand, Dan Crawford, The Republic (Vancouver), August 18 to 31, 2005
  14. ↑ A star rises in the east, Stella Farrington, April 2005
  15. ↑ Speaking freely: What the Iran 'nuclear issue' is really about, Chris Cook, January 21, 2006, Asia Times/energybulletin.net
  16. ↑ A frenzied Persian new year, March 22, 2006, Asia Times
  17. ↑ Iran oil bourse next week, April 26, 2006, Iranian.ws
  18. ↑ Ministry to offer IOB Articles of Association in two months, May 19, 2006, Mehr News Agency
  19. ↑ Iranian Journel, building has been purchased and new date is September, accessed July 6 2006
  20. ↑ Iran's oil bourse to be launched, September 15, 2006, Mehr News Agency
  21. ↑ Iran May Reduce Use of Dollar, Tehran Papers Say, December 6, 2006, Bloomberg
  22. ↑ Press TV - Iran's Baghdad embassy shifts to euro
  23. ↑ China shifts to euros for Iran oil, The Scotsman, 27 March 2007
  24. ↑ IRI to stop pricing oil in dollars, IRIB News, 31 March 2007
  25. ↑ Iran asks Japan to pay in yen, not dollars for oil purchases, Tokyo, 14 July 2007, IRNA
  26. ↑ UPI: "Analysis: Iran moves to ditch U.S. dollar"
  27. ↑ RIA Novosti: Iran stops accepting U.S. dollars for oil. TEHRAN, December 8, 2007
  28. ↑ The cabinet approves the opening of the International Oil Bourse. Kish Free Zone Organization. URL accessed on 2008-02-07.
  29. ↑ Iran-Daily.com
  30. ↑ Farsnews.com
  31. ↑ TehranTimes.com
  32. ↑ http://www.presstv.ir/detail.aspx?id=137666&sectionid=351020103
  33. ↑ http://www.oil-price.net/en/articles/iranian-oil-bourse-opening.php
  34. ↑ http://jus394globalrain.wordpress.com/category/undersea-internet-cables-mysteriously-cut/
  35. ↑ http://pkpolitics.com/2008/02/04/forth-cable-cut-iranian-oil-bourse-sabotaged/
  36. ↑ http://www.dailytech.com/Sabotage+Still+Not+Ruled+Out+in+Undersea+Cable+Cuts/article10779.htm
  37. ↑ http://www.wired.com/threatlevel/2008/02/who-cut-the-cab/
  38. ↑ gang8 yahoogroup

Citations[edit]

  1. Template:- The Iranian line in the sand, Dan Crawford, The Republic (Vancouver), August 18 to 31, 2005
  2. Template:- Kish Oil Exchange Planned, Iran Daily, January 24, 2006
  3. Template:- A star rises in the east, Stella Farrington, April 2005
  4. Template:- Speaking freely: What the Iran 'nuclear issue' is really about, Chris Cook, January 21, 2006, Asia Times/energybulletin.net
  5. Template:- A frenzied Persian new year, March 22, 2006, Asia Times


Literature[edit]


Literature[edit]

External links[edit]

This article contains content from Wikipedia. Current versions of the GNU FDL article Iranian Oil Bourse on WP may contain information useful to the improvement of this article WP
Retrieved from "http://eng.anarchopedia.org/index.php?title=Iranian_Oil_Bourse&oldid=45485"