Wow!? Iran has just opened it's new (non-US-dollar) oil bourse! Well,... um... not quite:
Iran established its first oil products bourse Sunday in a free trade zone on the Persian Gulf Island of Kish, the country's oil ministry said.Seems this "Iran Mercantile Exchange" is only a halfway step towards trading oil in Euros, which is the real goal:
A statement posted on the ministry's Web site said 100 tons of polyethylene consignment was traded at the market's opening on the island, which houses the offices of about 100 Iranian and foreign oil companies.
Oil and petrochemical products will be traded in Iranian Rials, as well as all other hard currencies, the statement quoted Iranian Oil Minister Gholam Hossein Nozari as saying. About 20 brokers are already active in the market, it said.
Iran has already registered for another oil bourse, in which it has said it hopes to trade oil in Euros instead of dollars, to reduce any American influence over the Islamic Republic's economy.How will the USA react to this news? AP and Bloomberg are running stories, but I can't see any US media picking it up yet...
A bourse official, Mahdi Karbasian, told the IRNA official news agency that such an oil market would begin operating within the next year.
The new bourse uses spot contracts (immediate payments) and there is a lot of political pressure against getting involved, so analysts (some, at least) are not expecting this bourse to have much impact.