Foreign Correspondence

[Amaunet]

Iran, deserves right to be OPEC’S secretary general

Iran has strongly considered switching to euro dollars. If Iran takes up the post of the upcoming OPEC’S secretary general Iran could supply the momentum for OPEC to act on their `internal discussions' and switch to the euro as their new oil currency.

-Am


Tehran Times Energy Desk
TEHRAN (MNA) -- Iranian Oil Minister Bijan Namdar Zanganeh said Iran deserves “logical” right to take up the post of the upcoming OPEC’S secretary general.

Zanganeh who was speaking on the sidelines of the 132nd Ministerial Session of the Organization of Petroleum Exporting Countries (OPEC) on Tuesday in Vienna told the Mehr News Agency correspondent that negotiations between the Islamic Republic of Iran’s delegation and all the influential groups in OPEC had started before commencement of the session.

Encircled by foreign journalists, Zanganeh declined to make any comment on Iran’s reaction if a non-Iranian national were elected as the organization’s secretary general however, he added, “In that case, Iran’s reaction would be appropriate and effective”.

OPEC ministers on Wednesday agreed increasing oil production by 1 million barrels a day later this year.

OPEC decided Wednesday to increase its official output by one million barrels per day from November 1, Iranian oil minister and his Algerian counterpart Chakib Khelil said here.

"We have decided to raise the quota by one million barrels per day from November 1," Khelil said at the close of the cartel's ministerial meeting here.

Zangeneh told AFP the increase to 27 million barrels per day was meant as a signal to the oil market that the cartel plans to maintain its current output.

"OPEC is producing two million (barrels) over the official ceiling. Now we have legitimized half of it," he said.

The minister added that the cartel believed the market was well-supplied and the quota was largely a sign of goodwill towards petroleum consumers. "I think it is a signal for the market, not more, probably we will witness no change in the total output. We believe there is not any shortage in the market but we wanted to prove this issue that we want to satisfy the consumers and consumer countries." Saudi Arabian Oil Minister Ali al-Nuaimi told reporters the quota hike was decided upon "to narrow the gap between the real production of 28 (million barrels per day). Instead of being at 26 we will be at 27."

OPEC has for the past two months been exceeding its quota in response to record prices driven by terror fears and rising demand in China. According to market sources, the 10 OPEC members in the quota system have since August already been pumping at least two million barrels per day above the current ceiling

Asked why the cartel did not choose to raise the ceiling to 28 million barrels per day, Nuaimi said the new figure was chosen to enable consensus between member states.

"It does not make any difference really," he said.

Nuaimi said the new quota would only come into effect in November as producers had already allocated their output for October.

OPEC president Purnomo Yusgiantoro told reporters the cartel hoped the quota increase would bring down the price of the OPEC basket of seven crude oils to around 30 dollars from current levels of about 38 dollars.

"The signal we would like to give out is to drop the price because the price we see today is too high," he told reporters.

The correct price for the basket would be "30-something," Yusgiantoro said.

OPEC also decided Wednesday to keep its price band steady at 22 to 28 dollars per barrel, according to Saudi Arabia's Nuaimi.

But Zangeneh said the 11-member cartel was likely to take another look at the matter at its next meeting, which will take place in Cairo on December 6.

He said the members were expecting feed-back from a panel of experts who have been studying changing the band, which has been at 22 to 28 dollars since it was created in March 2000.

http://www.tehrantimes.com/Description.asp?Da=9/16/2004&Cat=9&Num=016

Reference:

The American people are largely oblivious to the economic risks regarding President Bush's upcoming war. Not only is Japan's weakened economy at grave risk from a spike in oil prices, but additional risks relate to Iran and Venezuela as well, either of whom could move to the euros, thus providing further momentum for OPEC to act on their `internal discussions' and switch to the euro as their new oil currency.
#msg-994080

Iraq actually made a switch to euro dollars in Nov. 2000 (the U.S. dollar has declined vs. the euro since then) * Iraq converted its $10 billion "oil for food" reserve fund at the U.N. to euros * This information about Iraq's oil currency is *censored* by the U.S. media (Donald Rumsfeld suggested that if Saddam were "exiled" we could avoid an Iraq war) * Iran, another 'Axis of Evil' country is considering switching to euro dollars the US monopolizes global trade * Bush administration has recommended the overthrow of Yasir Arafat All axis of evil countries have or are moving toward using the euro and Bush wants to stop them * OPEC can topple the U.S. at any time by switching en mass to the euro. * A spike in oil prices can cause an economic melt down of the U.S. economy with Japan as the weak link Conjecture, presented as facts in the original article:* Iraq's switch to the euro was in response to the sanctions.
#msg-993009