Iran to take control of world's oil trade in 2005

In 2005 Iran will launch a new oil exchange that is expected to put an end to Western domination of the international oil trade. The US and UK, currently home to the world’s largest oil markets, are unlikely to allow Iran to undermine their control of the oil trade without putting up a fight.

A contract to design and establish a new platform for crude, natural gas and petrochemical trades is expected to be signed with an international consortium within days.

Top oil producing countries are determined to seize more control of trading after being advised that existing markets such as the IPE and Nymex in New York are not working in their favour.

Three years ago a former compliance director accused the IPE of manipulating prices, although these allegations were dismissed after an investigation.

The Tehran oil bourse is scheduled to open in 2005, according to its architect, Mohammad Javad Asemipour, who is a personal adviser to the Iranian energy minister.

“We are in the final stage of choosing a concession for what is going to be a very big development for us and the region,” he said.

The expected winner of the contract is a consortium of Iranian and international companies known as Wimpole, which is understood to include PA Consulting and a former director of Nymex.

Mr Asemipour has been in London in the last few weeks visiting commodity traders to encourage them to participate in his new venture.

He played down the dangers that the new exchange could eventually pose…

Posted by ShiftShapers
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