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Iran dumps US dollar for oil trades
Thursday, 1 May 2008 - 4:06 AM SL Time
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Iran, OPEC`s second-largest producer, has stopped conducting oil transactions in U.S. dollars, a top Oil Ministry official said Wednesday, in a concerted attempt to reduce reliance on Washington at a time of tension over Tehran`s nuclear program and suspected involvement in Iraq.
Iran has dramatically reduced dependence on the dollar over the past year in the face of increasing U.S. pressure on its financial system and the fall in the value of the American currency.
Oil is priced in dollars on the world market, and the currency`s depreciation has concerned producers because it has contributed to rising crude prices and eroded the value of their dollar reserves.
`The dollar has totally been removed from Iran`s oil transactions,` Oil Ministry official Hojjatollah Ghanimifard told state-run television Wednesday.
`We have agreed with all of our crude oil customers to do our transactions in non-dollar currencies.`
Iranian President Mahmoud Ahmadinejad called the depreciating dollar a `worthless piece of paper` at a rare summit last year in Saudi Arabia attended by state leaders from OPEC countries.
Iran put pressure on other OPEC countries at the meeting to price oil in a basket of currencies, but it has not been able to generate support from fellow members -- many of whom, including Saudi Arabia, are staunch U.S. allies.
Iran has a tense relationship with the U.S., which has accused Tehran of using its nuclear program as a cover for weapons development and providing support to Shiite militants in Iraq that are killing American troops. Iran has denied the allegations.
Iranian oil officials have said previously that they were shifting oil sales out of the dollar into other currencies, but Ghanimifard indicated Wednesday that all of Iran`s oil transactions were now conducted in either the euro or yen.
`In Europe, Iran`s oil is sold in euros, but both euros and yen are paid for Iranian crude in Asia,` said Ghanimifard.
Iran`s central bank has also been reducing its foreign reserves denominated in dollars, motivated by the falling value of the greenback and U.S. attempts to make it difficult for Iran to conduct dollar transactions.
U.S. banks are prohibited from conducting business directly with Iran, and many European banks have curbed their dealings with the country over the past year under pressure from Washington.
However, the U.S. has been wary of targeting Iran`s oil industry directly, apparently worried that such a move could drive up crude prices that are already at record levels.
Iranian analysts say Tehran can withstand U.S. pressure as long as it can continue its oil and gas sales, which constitute most of the country`s $80 billion in exports.
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sansare
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 30 Apr 2008 23:20:43 GMT Report for Abuse
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In Europe, Iran's oil is sold in euros, but both euros and yen are paid for Iranian crude in Asia
This is an interesting development to watch.
In fact, poor nations cant fully understand why the oil price is rocketing like this, while the production is not significantly changed.
Oil price in Australia almost close to price in SL.
How people/governments survive in SL under this situation?
Its dangerously unstable political situations in developing countries and indirectly helping global terrorism. |
Vishnu
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30 Apr 2008 23:43:59 GMT Report for Abuse
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Sansare,
The COL in Australia is also skyrocketing. Still we don't see Brendan Nelson breaking Mutti on streets of Canberra. Weired isn't it?
Edited By - Vishnu - 30 Apr 2008 23:44:27 GMT |
sansare
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30 Apr 2008 23:51:20 GMT Report for Abuse
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Vishnu,
Yes,..price is high here too.
Did you try eco-driving..?
It helps to run additional at least 1 km per 1L, in my car..! |
Mucha-linda
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1 May 2008 01:15:16 GMT Report for Abuse
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SANSARE,
I tried some ecodriving initiatives like forced stop manuevering at traffic lights (yes, I have to go through 16 of them at major intersection on daily basis) etc in addition to using cruise control whenever possible. It certainly saved some petrol even though I have never managed to quantify the gains in terms of kms.
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sansare
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1 May 2008 01:19:40 GMT Report for Abuse
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Mucha,
Did you try the gas paddle.
I mean keep your foot away from the gas paddle (accelerator), whenever its possible. That is more productive.
Most of us keep our foot on it, always, which is pumping gas more than enough to drive in some conditions.
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wick
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 1 May 2008 01:39:35 GMT Report for Abuse
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Iran dumps US dollar for oil trades
See how clever MR is.
Now all the petrol dealings going to be in SL Rupees.
Edited By - wick - 1 May 2008 01:40:18 GMT |
magha
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 1 May 2008 02:23:10 GMT Report for Abuse
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| If you are using cruise controller, why need to use the gas paddle? |
Mucha-linda
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1 May 2008 02:43:23 GMT Report for Abuse
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If you are using cruise controller, why need to use the gas paddle?
1. Cruise control can hardly be used while driving in urban traffic and you need to rely on accelerator.
2. Accelerator (both on-board and on-steering) could still become handy to gain some extra speed even when cruising.
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Fairplay
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 1 May 2008 02:50:44 GMT Report for Abuse
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If you have a PADDLE, you don't need gas you are buoyant. Of course keep the foot away from the PEDAL. Your vehicle could use the INERTIA from power generated already to cover a longer distance with diminishing speed.
When you go down a hill, think how you rode the bicycle during your small days. Free ride/Free wheeling. No need to pedal the bicycle.
Back to basics.
Fairplay |
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