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Iran President says there is glut in oil market, calls for setting up oil bourse, OPEC bank

Tehran, June 17, IRNA - President Mahmoud Ahmadinejad said on Tuesday there is glut in oil market calling for setting up an oil bourse and a bank by OPEC member states in order to optimize situation in energy market.

He made the remarks in an address to the 29th Meeting of the Council of Ministers of OPEC Fund for International Development which is underway in the ancient city of Isfahan, central Iran from June 17-18.

High-ranking officials from 12 OPEC member countries are participating in the event held at Abbasi hotel.

"The hard currency reserves of OPEC countries have been heavily affected by the fall in the dollar," said the president.

"I repeat my suggestion made six months ago at the OPEC summit in Riyadh to create a basket of credible currencies which would be the basis for oil transactions," the president said.

He referred to the continued decrease in the dollar's value as one of the world's major problems.

Thus the president suggested "A combination of the world's valid currencies should become a basis for oil transactions or OPEC member countries should determine a new currency for oil transactions." President Ahmadinejad also expressed his "complete support" for a proposal by his Venezuelan counterpart Hugo Chavez to create a bank by the OPEC members.

Establishing an oil bourse was another suggestion made by the Iranian president to help world developing and oil exporting countries overcome their current problems in the field of energy market.

He said the measure would protect OPEC members national interests.

President Ahmadinejad also called on world nations "to force bullying powers to use the money they spend for military purposes and occupation, to serve peace and help the poor countries."

He said that there is glut in the oil market and the price hike has been the outcome of manipulation on part of governments and companies in the consumer countries.

He regretted the "unfair" difference in income between energy exporting and importing countries stressing the need for reducing energy taxes in the consumer countries in order to solve the problem of mounting energy price.

The president added that big powers have intentionally imposed tensions, war and insecurity in parts of the world which are rich supplier of energy in order to serve their expansionist purposes.

"For years they (bullying powers) imposed inflation and their own economic problems on other nations by injecting the dollar without any support to the global economy" in order to fund the costs of their wars and occupations and to justify investments to exploit new sources of energy.

The president also stressed the need for drawing up a strategic plan to support the poor countries.

He noted that the final way to solve existing problems was establish a justice-based political and economic system.

"The current world is waiting for reforms, peace and stability," concluded the president

... Payvand News - 06/17/08 ... --

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