In June 2004, Iran announced its intentions to setup its own Oil Exchange on Kish Island. This would allow Iranian Oil to be bought with Euros in an Exchange to rival the NYMEX and ICE. This would be an attempt to re-shape the global economic system by converting it from a Petrodollar system to petroeuro. A move which could flatten the revenues of U.S. corporations and possibly the dollar itself. The Iranian Oil Bourse was registered this year on May 5th.
A similar move by Saddam Hussein, who began selling Iraqs Oil in Euros in 2000 was maybe the final nail in his coffin as during the ensuing war, Iraqi Oil was converted back to being priced in dollars.
Iran has 5.8% of the export market which may not be too much of a threat but more importantly, on May 10th 2006, Vladimir Putin announced his intention to setup a Russian exchange with Ruble denominated Oil. With Russia owning 15.2% of the export market the threat becomes apparent. Support for a Euro bourse has also come from from other countries such as Venezuela and China.
With the current level of debt in the U.S. it would not be keen on any threat to the Petrodollar and the status of the USD as the worlds reserve currency.
A similar move by Saddam Hussein, who began selling Iraqs Oil in Euros in 2000 was maybe the final nail in his coffin as during the ensuing war, Iraqi Oil was converted back to being priced in dollars.
Iran has 5.8% of the export market which may not be too much of a threat but more importantly, on May 10th 2006, Vladimir Putin announced his intention to setup a Russian exchange with Ruble denominated Oil. With Russia owning 15.2% of the export market the threat becomes apparent. Support for a Euro bourse has also come from from other countries such as Venezuela and China.
With the current level of debt in the U.S. it would not be keen on any threat to the Petrodollar and the status of the USD as the worlds reserve currency.
