Iranian Oil Bourse Inaugurated

Friday, July 15, 2011

The Iranian Oil Bourse (IOB), a concept in the making since 2005, has suddenly opened its doors for crude oil trading, but no trades occurred on the first day of trading on Wednesday.
According to a snippet at Tehran Times from Thursday,
The Iranian oil bourse was officially inaugurated on Wednesday, with 600,000 barrels of heavy crude oil being offered for sale on the Kish International Commodity Exchange. 
The crude oil stock was offered at the base price of $112.60 per barrel but no dealer was ready to pay above $109.65, so no transactions were carried out. 
Iran began offering fuel oil contracts on the oil bourse in April. 
“Iran, like other countries, needs to rely on the free market to be competitive,” Ahmad Rezaii, who is an adviser of the Iran Mercantile Exchange director general, said at the opening ceremony. 
“We want to put in place a system for the modernization of the exchange and trade of strategic items. Our exchange has these capabilities,” Rezaii added. 
Iran, which possesses the world’s second largest gas reserves and third largest oil reserves, is trying to play a more active role in oil and petrochemical transactions in international markets
It is worth noting that the Tehran Times stated US dollar prices for the oil on offer. Iran had earlier stated that it would not trade oil in dollars at the IOB.
The IOB started trading petrochemical products in February 2008 after several delays with contracts in Rials and Roubles but not dollars.

Read these posts for further background on the latest oil trading venue:
Iranian Oil Bourse Could Kill The US Dollar
More News On The Iranian Oil Bourse
Iranian Oil Bourse To Be Launched In May
Iranian Oil Bourse Started Trading Today, Will Also Accept Roubles
Dollar Danger: Iranian Oil Bourse Steps Up Activities

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Anonymous said...

We (Blogentary at Coventry League) posted a related article about the Bourse, with a reference to a different source indicating the recent trades were actually denominated in non-USD.

Here is the Blog title and link:

Oil Being Sold in Euro and Dirham

19 August, 2011 20:18

New players in the oil industry should help stabilize prices around the world. Keeping things that way, however, is another matter.

23 April, 2012 05:43

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