Dollars and Oil

…Perhaps it might be helpful if I clarified a few misconceptions re the “Iran Oil Bourse” by updating and reiterating the following Asia Times article I wrote.

Firstly, the reason for the project in the first place was nothing to do with Euro’s and everything to do with the domination and manipulation of the global market in energy by intermediaries. A problem which has got worse not better.

Secondly, neither NYMEX nor ICE Futures (formerly known as IPE) have much to do with buying and selling physical oil or products. Their purpose is to allow buying and selling of oil price RISK by allowing producers and consumers to “hedge” the risks of falling or rising oil prices respectively. Unfortunately the derivatives tail has in recent years been wagging the oil market dog to the serious detriment of producers and consumers.

As for progress of the IOB, there really has not been any for well over a year. Yes, a building in Kish island has been bought and legal entities created, but no other elements of market infrastructure have yet even been specified, never mind begun.

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