September 08, 2008

Oil dealings in Iranian Oil Exchange soon – Experts

Moscow daily Vermianovesti quoted Mr Rajab Safarov head of Iran contemporary studies center in Russia as saying that in the coming months, Iran wants to privatize its oil companies, whose number is no more than 40 and start oil deals in Iran's Oil Exchange Market.

Mr Safarov said that Iran's Oil Exchange is a crucial body that is expected to leave a drastic impact on the world oil market. He added that experts believe some European middlemen in the exchange market are mulling formation of conglomerate companies with the Iranian ones to prepare the ground for being presented in the Iranian Oil Exchange market.

Pointing to Iran's significant position among the oil producing states, Mr Safarov said that Iran sells USD 70 billion worth crude annually and if the volume of dollar is omitted from the world economy, the US currency will receive a tangible blow. He also ruled out claims that there will be no customer for oil in euro and said demand for Iranian and other countries' oil is higher that its supply and other oil producing countries cannot fill up the gap erupting as a result.

He added that oil purchase in euro will be more to the benefit of Europeans because they will not spend on the currency exchange operations.

It may be noted that Iran will inaugurate its Oil Exchange market on February 27th 2008. The exchanges will be in rial and possibly euro and the Exchange will be located in Kish Island in Persian Gulf.