Iranian Insider: Scrutiny Returns to Oil Revenue Use

Excerpt from Caspian Investor by Kent F. Moors, Ph.D., Contributing Editor

On February 17, an Iranian National Audit Office report ignited another round in the political fight over oil sale proceeds. However, for the first time, this one clearly indicates that Ahmadinejad officials have been illegally withholding funds. Issued for the Majlis (parliament), the analysis reveals that the government did not return to the treasury $1.058 billion of surplus oil revenues from the 2006-2007 budget. “This is certain to put the current government under renewed pressure,” an editor at the Tehran Times told us on February 20. “Even some of the president’s main supports are criticizing such actions.”

The report also stated that there had been no mention in government documents of the $61 million paid in taxes by the National Iranian Oil Co. (NIOC). In a related matter, “The government purchased a large amount of gasoline and gas oil during the current Iranian year [to end March 20] without parliamentary approval,” said Hamid-Reza Katouzian, head of the Majlis Energy Committee, on February 15. He called on the Majlis Presiding Board to conduct a serious probe into the situation

Read More on this Probe into the Oil Revenue Use (free)

The Russian Ruble at the Iranian Oil Exchange

Exerpt from Russian Petroleum Investor

Earlier this year, a special oil exchange opened on the Iranian island of Kish in the Persian Gulf to trade oil, oil products and natural gas. In the opinion of experts, the Iranian experience in creating the exchange is especially interesting to Russia because, first, it begins exchange trade in oil and oil products; secondly, it is possible that in the near future there will be a new Iranian- Russian gas exchange.

Iran is the second country in the region on oil production after Saudi Arabia, extracting nearly 22 million tons of oil a year. However, because of rigid state regulation, it cannot take an appropriate place in the global market, despite a convenient geographical location. According to the Minister of Oil Gholam- Hossein Nozari, the purpose of creating an oil exchange is transformation of Iran from an oil-producing country to an important player in the global market of oil and oil products. “Our purpose is to make oil and oil products trade more transparent, to strengthen competition and to attract solid investors, to become a part of the global market not only in the sphere of oil extraction but also in the sphere of oil trade,” Nozari declared.

More on the Iranian Oil Exchange>

Tehran Again Attacks Petrodollar System

Excerpt from Caspian Investor by Kent F. Moors, Ph.D.



Sources in both Tehran and Europe are telling Caspian Investor that Iran is renewing its attack on dollar-denominated oil trade. The move is hardly new. Tehran is introducing its own oil exchange and new benchmark sour crude rate, neither of which is to designate sales in dollars. Current Iranian requirements prevent any purchase of its oil or natural gas with dollars, and some of these restrictions have begun to affect a few secondary trades and swaps in oil contracts through Dubai.



More