Sanctions Will Not Hinder Iranian Oil Production

TEHRAN, March 6 (Reuters) - Iran's oil minister said on Thursday the latest U.N. sanctions on Tehran over its disputed nuclear plans would not affect the oil sector in the world's fourth-largest crude producer.

Gholamhossein Nozari was also quoted as describing this week's OPEC meeting in Vienna as positive and said the impact of the cartel's decision to keep production unchanged would be seen in coming weeks.

OPEC ministers agreed to hold output steady and said oil prices which hit an all-time high on Wednesday were driven by factors beyond their control. U.S. crude surged to a record $104.95 a barrel in late Wednesday trade...

But he said: "The impact of OPEC's decision on oil prices will become clear in future weeks and one should see how the price growth develops in future weeks."

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Eariler this week, Iran wanted to cut back oil production. However, according to this article, OPEC ministers have agreed to keep output at the current amount. Though the U.S. continues to place sanctions on Iran, this Middle Eastern country plans to reign as the "world's fourth-largest crude producer."

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Will OPEC Increase Output?

VIENNA, Austria (AP) — OPEC has all but ruled out pumping more oil to ease record-high prices, key oil ministers signaled Tuesday on the eve of a key meeting...

Kuwait and Libya are among OPEC members who have said the cartel should maintain its current output, estimated at about 31.5 million barrels a day — roughly 40 percent of daily world demand.

However, Iran and Venezuela — both hawkish on prices — have pressed for a cut in output. Analysts said it was doubtful that the rest of OPEC would go along with that, since it would push prices even higher in the short-term...

"Global markets are well supplied," Iranian Oil Minister Gholam Hussein Nozari said Tuesday, saying the weak U.S. dollar was a greater concern.

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Kuwait and Libya want OPEC to continue producing crude oil at the current rate, but Iran and Venezuela wish to cut back on oil production. The Iranian oil minister stated that markets around the world were "well supplied." Iran's stronghold on crude oil and their awareness of this advantage could have a huge impact on international oil trade.

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First phase of Iran oil bourse inaugurated on Kish island

The first phase of Iran's oil stock market started its work on Kish island in the Persian Gulf, southern Iran, on Sunday presenting oil and petrochemical products. The stock market was inaugurated in a video conference ceremony from the capital Tehran attended by ministers of oil, finance and economic affairs as well as chairman of Iran's Stock Exchange and a number of other officials and financial experts

Oil Minister Gholam Hossein Nozari said that Iran's Oil Bourse is to open gate of international oil business to Iran in the near future. The specialized bourse for oil derivatives and petrochemical products is regarded as a turning point in oil transactions, he said. Iran's share in international oil trade is very low and such a bourse will help Iran take a leap in this sector in the near future, underlined the minister. It is predicted the event would prepare grounds for active presence of foreign investors in Iranian oil industry and thus raise the country's share in global oil trade, he said.

Full article here

This post is showig how Iran is trying to enter into the world of trade. Iran is trying to make allies and raise there GDP.

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Petrochemical Revenue on the Rise

According to Iran Petrochemical Commercial Co. (IPCC), liquefied gas had the lion’s share among export-bound products in terms of weight as its volume stood at 1.879 million tons.

Based on predictions, the value of export-bound petrochemical goods will soar to five billion dollars by mid-March 2008.

Iran exported 6.48 million tons of petrochemical products from March 21 to Dec. 21.

The exports fetched the country 3.84 billion dollars...

Pars Special Economic Energy Zone (PSEEZ), Assaluyeh, southern Iran, exported 3.058 million tons of petrochemical products to the world markets in the nine month period...

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As the article shows, countries worldwide depend on Iran to produce and export large amounts of oil and liquefied gas annually. The article also predicts that the money Iran earns from oil exports will continue to increase. It is predicted that annual revenue from the petrochemical industry will reach 8.3 billion dollars by mid-March 2008.

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High Oil Prices

In a stern warning to Iran days after a January 6 confrontation with U.S. warships in the Persian Gulf, Bush put Tehran on notice that it needs to be careful. The president said it would not matter to him whether an attack against an American vessel resulted from an order by the government in Iran or a rash decision by an Iranian boat captain.





"It's not going to matter to me one way or another," Bush said. If the Iranians hit a U.S. ship, "there are going to be serious consequences," he said.






U.S. officials claim Iranian speedboats swarmed three Navy warships in the Strait of Hormuz, the narrow waterway that is the only entry and exit to the Persian Gulf. They said U.S. Navy commanders were considering firing warning shots, before the retreat of the five Iranian speedboats, which the Pentagon said were operated by the elite Revolutionary Guards.

This article is important because it discusses the rising tension between the United States and Iran concerning oil. Oil prices have risen to $100 per barrel, and the United States is "feeling the pain" of the price increase. The incident in the Persian Gulf further escalated the tension.

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