Iran oil bourse: a threat to the petrodollar?

Apparently, price controls, tariffs and subsidies are not the only tools of trade warfare. Now Iranians use commodity trading for the same purpose.

Emilie Rutledge. Iran oil bourse: a threat to the petrodollar? http://english.aljazeera.net/NR/exeres/C1C0C9B3-DDA9-42E2-AE9C-B7CDBA08A6E9.htm
Iran's decision to set up an oil and associated derivatives market next year has generated a great deal of interest.
This is primarily because of Iran’s reported intention to invoice energy contracts in euros rather than dollars.
It is unlikely, in the short term at least, that large numbers of energy traders will decamp and set up shop in Iran; a country which happens to be categorized as a member of the ‘axis of evil’ by the president of the world’s largest oil importing country; the United States.
But over time Iran could take some business away from the two incumbent energy exchanges, the International Petroleum Exchange and the New York Mercantile Exchange whom both invoice sales solely in dollars.
Iran has around 126bn barrels of proven oil reserves about 10 percent of the world's total, and has the world’s second largest proven natural gas reserves.
From an economic perspective, invoicing oil in euros would be logical for Iran as trade with the euro zone countries accounts for 45 percent of its total trade. More than a third of Iran’s oil exports are destined for Europe, while oil exports to the United States are non existent.
In November 2000, Iraq began selling its oil in euros, its ‘Oil For Food’ account at the UN was also transferred into euros and later it converted its US$10bn UN held reserve fund into euros.
Perhaps unsurprisingly, since the US led occupation of Iraq its oil sales are once again being invoiced in dollars.

REALLY ALL ABOUT. This will be "interesting".

What's next. Regime change?

NO MORE WAR!

since its costs them a fortune to convert the oil dollars to Euros.

Of course, the Europeans are getting a bargain buying oil in dollars lately, and they sell to Iran in Euros, so they might have been standing in the way. Dunno how much Iranian oil the Brits buy, but they're screwed either way.

The Real Reasons Why Iran is the Next Target:
The Emerging Euro-denominated International Oil Marker by William Clark

http://globalresearch.ca/articles/CLA410A.html

The Iranians are about to commit an "offense" far greater than Saddam Hussein's conversion to the euro of Iraq’s oil exports in the fall of 2000. Numerous articles have revealed Pentagon planning for operations against Iran as early as 2005. While the publicly stated reasons will be over Iran's nuclear ambitions, there are unspoken macroeconomic drivers explaining the Real Reasons regarding the 2nd stage of petrodollar warfare - Iran's upcoming euro-based oil Bourse.



In 2005-2006, The Tehran government has a developed a plan to begin competing with New York's NYMEX and London's IPE with respect to international oil trades - using a euro-denominated international oil-trading mechanism. This means that without some form of US intervention, the euro is going to establish a firm foothold in the international oil trade. Given U.S. debt levels and the stated neoconservative project for U.S. global domination, Tehran's objective constitutes an obvious encroachment on U.S. dollar supremacy in the international oil market

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Indeed, the author’s original pre-war hypothesis was validated shortly after the war in a Financial Times article dated June 5th, 2003, which confirmed Iraqi oil sales returning to the international markets were once again denominated in US dollars, not euros. Not surprisingly, this detail was never mentioned in the five US major media conglomerates who appear to censor this type of information, but confirmation of this vital fact provides insight into one of the crucial - yet overlooked - rationales for 2003 the Iraq war.



...Numerous news reports over the past several months have revealed that the neoconservatives are quietly - but actively - planning for the second petrodollar war, this time against Iran.

In the 1970-ies, N.Vitnam was bombed, but not invaded. No, it was not because of Jane Fonda's activism. Occupation of N.Vietnam was technically impossible, there was simply not enough resources for this. Pretty much same thing now happens with Iran.

He must go. Impeachment is a necessity; soon we will all be made to pay for the arrogance of a numbskull and his fascist cabal.

<He must go. Impeachment is a necessity; soon we will all be made to pay for the arrogance of a numbskull and his fascist cabal.>

Both Sharon in Israel and Blair in the UK developed quite effective "teflon" strategies. The way it works, there are lots of fierce criticism of their actions in the media, it looks like they are ready to go. However, in the end, nothing really sticks to their political imagies, Arik and Tony are doing just fine.

When will this circus end - I wish I knew this :-(.