Exclusive: Iran wants euro payment for new and outstanding oil sales - source
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The Iranian Oil Bourse Persian: It was created by cooperation between Iranian ministries, the Iran Mercantile Exchange and other state and private institutions in The IOB is intended as an oil bourse for petroleum iran trade oil in euros, petrochemicals and gas in various currencies other than the United States dollarprimarily the euro and Iranian rial and a basket of other major non-US currencies. The geographical location is at the Persian Gulf island of Kish which is designated by Iran as a free trade zone.
DuringIran asked its petroleum customers to pay in non US dollar currencies. By December 8,Iran reported to have converted all of its oil export payments to non-dollar currencies. Currently the Iran trade oil in euros 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.
The three current oil markers are all US dollar denominated: As the Oil Bourse in Kish is developed through successive stages, the plan is to establish a Petrobourse iran trade oil in euros a fourth oil market, denominated by the Iranian rialthe euro and other major currencies. Iran sits on some of the largest oil and gas reserves in the world. 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. 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". As ofthe Oil Bourse was a spot market for petrochemical products mainly, with plans to introduce sharia -compliant futures contracts for iran trade oil in euros 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 criteria. Global standards for Islamic derivatives were set in While his complaint iran trade oil in euros UK regulators of settlement price manipulation iran trade oil in euros dismissed by the appointed Commissioner on a technicality the routine nature of settlement price manipulation subsequently became common knowledge.
February Chris Cook and an Iranian colleague Mehdi Moslehi - an exchange trading technology consultant — agreed that Iran was well placed to provide the necessary liquidity to create a Middle Eastern Benchmark contract. Governor Nurbakhsh requested a formal outline proposal in the form of a letter which he undertook to convey to Iran's petroleum ministry. The building and trading platform were implemented in Kish Island of Iran.
The Iranian oil bourse, first reported ininitially had a widely publicised opening date of March 20, According to an April report, the Tehran Stock Exchange TSEthe Wimpole Consortium and a private staff iran trade oil in euros for retired petroleum workers were to form a consortium developing the exchange. January 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.
February Wimpole consortium complained that their invoices which used to receive the trading license has not paid.
March the Petroleum Minister of Iran, Kazem Vaziri Hamaneh, announced that due to "technical glitches", the Bourse launch was postponed, with no new date set. July a building has been purchased and the projected opening date was originally slated for September March The New York Times reported that China's state-run Zhuhai Zhenrong Tradingthe 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. September Japan's Nippon Oil has agreed to buy Iranian oil using yen.
December Iran stops accepting U. February 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 Ministrythe Ministry of Foreign Affairsand 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 The Iranian Iran trade oil in euros 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.
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. IME reported that "the international trading floor of crude oil and petrochemical products in the Kish Island was put into operation. Iran trade oil in euros summarized the 3 phases of Kish Stock Exchange's opening roadmap . Iran started fuel oil transaction in Kish Oil Bourse: Third phase of Iran Crude Oil Exchange has been launched.
A shipment ofbarrels of heavy crude oil were offered at the Kish Commodity Exchange on 18 August and were traded at USD The crude consignment was traded without any discount or additional premium.
The Iranian oil bourse will no longer trade oil in the US dollar but start trading oil in other currencies like the euroyenyuanrupee or a basket of currencies. Iran has proposed the creation of a Petrochemical Exporting Countries Forum PECF which aims at financial and technological cooperation among members, as iran trade oil in euros as product pricing and policy making in production issues.
It has been iran trade oil in euros that 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.
From Wikipedia, the free encyclopedia. Gas Exporting Countries Forum. Iran portal Energy portal. Investment in oil and gas in Kish is competitive and justified". Kish Free Zone Organization. There are no limitations on transactions by foreigners at the Oil Bourse". Archived from the original on Middle East News, Iraq, Iran current affairs". S News - UPI.
PKPolitics - Pakistan Politics. Power stations Iran trade oil in euros industry Economy Energy subsidies reform plan Transport. Retrieved from " https: Commodity exchanges in Iran Petroleum in Iran Monetary hegemony Non-renewable resource companies established in establishments in Iran.