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Iran President proposes formation of OPEC bourse


Riyadh, Nov 18, IRNA - President Mahmoud Ahmadinejad said on Sunday that devaluation of US dollar has left negative impacts on OPEC and global economy.

President Ahmadinejad made the remarks in the third annual summit of Organization of Petroleum Exporting Countries (OPEC) in Saudi Arabian capital of Riyadh on Sunday.

Due to devaluation of US dollar in international and oil transactions, it is necessary to replace US dollar with another major hard currency, he stated.

The Iranian president called for drawing up of a comprehensive plan for OPEC and establishment of an specialized bank called "OPEC Bank" to safeguard the hard currencies of OPEC member states.

He also called for formation of an "Oil Bourse" by OPEC members to meet their demands.

Ahmadinejad, heading a high-ranking delegation, left Tehran on Saturday for a regional tour which took him to Bahrain and Saudi Arabia.

He left Manama for Riyadh Saturday evening where he attended the third Summit of the Organization of Petroleum Exporting Countries (OPEC).

The two-day OPEC summit started Saturday night with participation of heads of state from 13 countries.

Foreign Minister Manouchehr Mottaki, heading a high-ranking delegation, arrived in the Saudi Arabian capital on Friday.

Oil Minister Gholam-Hossein Nozari and Minister of Economy and Finance Davoud Danesh Jaafari also arrived in Riyadh on Thursday to attend the OPEC ministerial meeting.

OPEC member states are Saudi Arabia, Iran, Indonesia, Iraq, Algeria, Kuwait, Angola, Libya, Nigeria, Qatar, the United Arab Emirates (UAE) and Venezuela.

OPEC to consider US dollar decline in combatting inflation

Riyadh, Nov 18, IRNA - OPEC members, most of whose currencies are pegged to the US dollar, will jointly consider a revaluation in December in a bid to combat inflation, Secretary General of the Persian Gulf Cooperation Council (PGCC) said in Riyadh on Sunday.

Falling US dollar's effect on oil revenues overshadowed Saudi Arabia's promises to fight global warming at this weekend's OPEC summit in Riyadh.

Saudi Arabia committed dlrs 300 million to research climate change, while OPEC leaders pledged to cut emissions from oil and gas production.

The dollar's 10 percent decline this year has cut the buying power of revenue from record oil prices above dlrs 90 a barrel.

A further drop may harden OPEC's reluctance to raise supply in a bid to ease prices.

Ministers at the summit said the oil market was well-supplied and recent gains were due to speculation and beyond the group's control.

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