Help me figure this out, I'm sure there's some connection but I'm not putting the pieces together ... Help me understand why Bush, against all logic, is so hot to make this Dubai port deal go through and what the oil connection is.
Dubai Bourse Not a Rival for Iran’s Oil Bourse
$this->bbcode_second_pass_quote('', 'T')he oil bourse of Dubai is by no means a rival for Iran’s oil bourse because the nature of contracts and substances there are quite different from Iran.
Mohammad Javad Asemipour, official in charge of launching Iran’s oil bourse, took part in an exclusive interview with Petroenergy Information Network to discuss the latest developments related to oil bourse.
Q: During recent week it was revealed that Dubai is setting up an oil bourse in cooperation with New York oil bourse (NYMEX) and some media called it a threat to Iran’s oil bourse. What is your opinion?
A: This is not a new development. Dubai oil bourse was to be established as a national bourse with NYMEX as consultant. However, since NYMEX and London’s IPE bourse seek their own models and want other bourses to represent them, the plan was a failure from the outset. When Iran’s oil bourse was launched, NYMEX felt the heat and took two steps: firstly, it established a branch in Ireland to compete with IPE in North Sea, and secondly, it launched Dubai branch. Dubai branch pertains to NYMEX not Dubai. However, some Iranian media are mistaken about the whole affair.
Q: What activities will be followed at Dubai bourse?
A: Its main goal is assessment of crude varieties that are facing sales difficulties. For this reason, substances presented there cannot be a rival to Iran’s bourse. On the other hand it deals in gold and high-sulfur crude. In fact, the real name of Dubai bourse is energy and metals bourse. Its will take until 2006 to be in full swing and will focus on future deals.
Q: What substances will be presented at Iran oil bourse?
A: Iran’s bourse is a national, independent bourse and those who designed it have mixed main features of NYMEX, LME, IPE, Vienna’s bourse and Singapore’s bourse. Iranian bourse will consist of paper and physical transactions and will deal in petrochemical products, gas products, oil and its products, as well as downstream petrochemical products such as hydrocarbons and polymers.
Q: Deputy minister of economic affairs has noted that feasibility report on the oil bourse has not been sent to Bourse Council and there is no hurry for launching the bourse up to the end of Khatami’s government. Where is that report?
A: The report has been prepared in 500 pages both in Farsi and English and has been sent to minister of economic affairs and finance along with a letter. The report has been prepared by a group of former directors of IPE and NYMEX and includes every detail.
About hasting or postponing the bourse I shall say that Ministry of Economic Affairs and Finance is the main architect of national economy according to articles 15 and 95 of the Third Economic Development Plan Act. So, it is for that ministry to speed up the plan. If Iran dawdles, other countries will take the upper hand; Dubai today and Qatar tomorrow. In that case we must only regret what we had done. International arena is the scene of competition.
Q: Why Ministry of Petroleum seems to be in no hurry?
A: We have been obliged by law to launch the oil bourse. We have done studies, purchased a building, signed relevant agreements, and bought needed software. The feasibility report has also been prepared. Therefore, as soon as Bourse Council gives the go-ahead, the oil bourse will start to work. That permit should be issues either under the current government or the next one; either now, or two months later. Launching an oil bourse is our sealed destiny.
Q: Minister of petroleum, however, has asserted that postponement in starting an oil bourse is due to certain conditions. When it will finally be launched?
A: If they issue the permit, we would be able to launch it before Khatami’s government is over. Market plays a competitive role. Foreign investment and foreign agents are requisites of modern market. Every government that has a better grasp of reality will be the ultimate winner.