http://www.iht.com/articles/ap/2008/04/30/news/Iran-Oil.php
The Associated Press Published: April 30, 2008
TEHRAN, Iran: Iran has stopped conducting oil transactions in U.S. dollars, an official said
Wednesday, a concerted attempt to reduce reliance on Washington at a time of tension over Tehran's
nuclear program and suspected involvement in Iraq.
Iran, OPEC's second-largest producer, has dramatically reduced dependence on the dollar during the
past year in the face of increasing U.S. pressure on its financial system and the fall in the value
of the American currency.
World markets price oil in U.S. dollars. Its depreciation has concerned producers because it has
contributed to rising crude oil prices and has eroded the value of their dollar reserves.
"The dollar has totally been removed from Iran's oil transactions," Hojjatollah Ghanimifard, a top
Oil Ministry official, told state-run television Wednesday. "We have agreed with all of our crude
oil customers to do our transactions in non-dollar currencies."
At a summit last year in Saudi Arabia, Iranian President Mahmoud Ahmadinejad called the depreciating
dollar a "worthless piece of paper."
Iran put pressure on other Organization of Petroleum Exporting Countries members at the meeting to
price oil in a basket of currencies. But it has not been able to generate support from fellow
members - many of whom, including Saudi Arabia, are staunch U.S. allies.
Iran has a tense relationship with the U.S., which has accused Tehran of using its nuclear program
as a cover for weapons development and providing support to Shiite militants in Iraq who are killing
American troops. Iran has denied the allegations.
Iranian oil officials have said previously that they were shifting oil sales out of the dollar into
other currencies, but Ghanimifard indicated Wednesday that all of Iran's oil transactions were now
conducted in either euros or yen.
"In Europe, Iran's oil is sold in euros, but both euros and yen are paid for Iranian crude in Asia,"
he said.
Iran's central bank also has been reducing its foreign reserves denominated in U.S. dollars,
motivated by the falling value of the greenback and U.S. attempts to make it difficult for Iran to
conduct dollar transactions.
U.S. banks are prohibited from conducting business directly with Iran, and many European banks have
curbed their dealings with the country over the past year under pressure from Washington.
However, the U.S. has been wary of targeting Iran's oil industry directly, apparently worried that
such a move could drive up crude prices that are already near record levels.
Iranian analysts say Tehran can withstand U.S. pressure as long as it can continue its oil and gas
sales, which constitute most of the country's $80 billion in exports.
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http://www.guardian.co.uk/feedarticle?id=7488136
Producers to discuss "gas OPEC", Iran says
Reuters Sunday April 27 2008
TEHRAN, April 27 (Reuters) - Representatives from natural gas producing countries meeting this week
will discuss forming an OPEC-style grouping, an Iranian official said on Sunday, a move opposed by
the United States and the European Union.
The Gas Exporting Countries Forum (GECF) meets on Monday in Tehran at the level of senior experts
and deputy ministers.
"Regarding the gas OPEC, we have pursued that with the Russian side and other concerned countries
and it will also be examined in (Monday's) meeting," Foreign Ministry spokesman Mohammad Ali
Hosseini told a news conference.
Russia has the world's biggest gas reserves and is the biggest exporter. Iran has the second largest
reserves but has been slow to develop exports, partly due to U.S. sanctions.
The United States and the European Union have said creating a body for gas, resembling the
Organization of the Petroleum Exporting Countries, would endanger global energy security and make
room for price manipulation.
Experts have said the gas forum is unlikely to become as influential as OPEC because gas deals are
done on a long-term basis, rather than the spot system by which oil is traded.
Some gas contracts run for more than 25 years and they include formulas for smoothing out spikes in
energy prices.
Gas producers such as Russia, Iran, Qatar, Venezuela, Nigeria and Algeria meet as part of the GECF.
Their gatherings have spurred speculation the club could form the basis for an OPEC-style group.
Jan Rasmussen