Iran's Persian Gulf oil bourse on track

Apr 2, 2006

Iran is still insisting on opening a Persian Gulf oil bourse with the southern Iranian island Kish as its base, state-television reported Saturday. 'The issue has already been agreed upon and the oil ministry has been instructed to open this bourse in the Persian Gulf island of Kish,' Economic and Finance Minister Davoud Danesh-Jafari said.

'This bourse will have a positive impact on oil sale by not only Iran but the whole (Persian Gulf) region,' the minister added.

He also reiterated that the new oil bourse could also replace the dollar-based oil exchange with euro.

Iran argues that while 60 per cent of the global oil and 25 per cent natural gas need was covered by the Persian Gulf states, oil dealin in either New York or London would have no meaning.

Iran also wants to avoid the dollar-based oil exchange for not being target of economic problems of the United States and calls on a fair distribution of global economic interests.

The plan to open the oil-bourse in Kish was raised by the administration of President Mahmoud Ahmadinejad last year and supposed to be opened before the new Persian year which began March 21 but eventually postponed.