ALLAH MORAD SEIF /
The oil bourse and its issues /
The launch of the oil bourse in the context of Iran’s oil embargo is a fascinating news that, of course, is also under review. The main goal announced by the decision, which has been approved by the heads of state, is the attempt to abolish sanctions. Although the experts are concerned, but they are raising issues that are important in their place and should be taken into consideration by the authorities, the principle of this action, which is an active approach to the issue of sanctions, is worthy of praise. In this note, while reviewing the reasons for the adversaries and opponents and the warnings of the experts, we will look at other points that have been neglected.
The supporters in the confirmation of the creation of the oil bourse have stated the following:
- The supply of crude oil in the oil bourse is an important step towards strengthening and completing the oil bourse as the fourth stock exchange in the country (the oil bourse with the decision of the Supreme Council of the oil bourse and securities in June 2011 to supply oil products and derivatives, electricity , Natural gas, coal and other energy carriers).
- There is a possibility of diversification in the methods of supplying and selling oil in the oil bourse .
- ۳) With the commencement of the process of reducing the country’s oil and gas exports, setting up the oil bourse as a solution to US oil sanctions is a national imperative by selling oil to the non-state sector on the oil bourse .
- Since the deliveries of oil to the oil bourse at its lowest volume (35 thousand barrels) will cost at least several tens of billions of dollars, the oil market is one of the best ways to attract market liquidity and lead it to production Oil is
- Selling oil on the oil bourse is the clearest and safest method of dealing because it is publicly held.
- The possibility of creating competitive conditions for domestic refineries by supplying crude oil in the oil bourse .
- The establishment of the market for the crude oil market in Iran as one of the largest oil and gas producing countries, and one of the largest hydrocarbon reserves and resources in the world, is a necessity considering the approaches to the 1404 document.
- Oil bourse markets are a means to reduce the risk of oil trades, reduce volatility and increase flexibility, and provide tools for exchanges between traders, producers, consumers, refiners and brokers.
- With the launch of the oil bourse , we can hope that in the not-so-distant future, we will see an increase in foreign exchange earnings from trading in this market, attracting foreign investment and enhancing our international position.
- The positive role of launching the oil bourse in clarifying and improving the economic and commercial structure of Iran, increasing the value added of oil and gas products, and consequently increasing the GDP and consolidating the position of Iran in the region can be significant.
But the reasons for opposition to the oil market:
- Those looking for an oil bourse are greedy dealers, and addressing the oil bourse is a deviant and misguided path and does not contribute to national interests.
- Insolvency and obligations for the return of money for oil deliveries for domestic agents can not easily be provided. This will ultimately lead to a lack of return on oil money.
- There is no provision for the oil market to be sanctioned. The oil bourse is monitoring the sale of oil in foreign markets, and the justification that because of the sanction of the state, the private sector, and companies can buy and sell oil is a far cry from reality, because it is unclear whether they How will they carry oil, and which companies and refineries will they sell?
- The oil bourse has its own definition. Oil is also an international product to be exported and its customers are abroad. Therefore, the oil bourse should necessarily be affiliated to an international oil bourse and should be traded with the presence of an international stock exchange. Nevertheless, such a market should be launched in a free zone such as Kish.
- The Ministry of Petroleum has an obligation to supply crude oil for the needs of domestic refineries. In the absence of fixed oil prices, and the customer is clear, there is no reason to launch a new market called the oil bourse .
- To trade in the oil bourse , we must have different types of oil, which in practice we do not have this property. Also, we will have problems with the oil insurance problem. The problem of oil and oil futures will also add to our problems.
- The idea of the oil futures market is a propaganda tool to reduce the psychological effects of sanctions, and in practice it can not be successful and can not guarantee our oil sales because its mechanism is very difficult and difficult. However, in this way it may be possible to sell oil in a very limited amount.
- The mechanism of the oil bourse is based on the free market and the free market is based on supply and demand. Naturally, we do not have a problem with the supply side, but on the demand side we will certainly have many problems, because there is no proper market for our oil demand.
- The volume of physical supply of oil in the world oil bourse is very limited, and the entire world stock exchanges use oil futures for futures trading, and in fact the oil bourse trades oil stocks, not oil. The rate of physical delivery of oil in the oil bourse is negligible. While the philosophy that the authorities have set up for the oil bourse is to sell domestic oil to other countries, this is a clear contradiction with other oil bourse s in the world.
- The idea of creating an oil bourse in Iran dates back to the years before the sanctions, but this has not happened so far for various reasons, including technical, scientific and economic reasons.
- The sale of small shipments due to higher transportation costs makes it possible to compete. With rivals, the oil market will be stripped of the mediators of crude oil on the oil bourse .
What has been mentioned is part of the views of the supporters and opponents. Regardless of the extent to which the oil bourse in the current situation is feasible and feasible, the following points can be drawn from the perspective of the future:
(۱) The principle of the decision to create an oil bourse , just in the face of the enemy of Iran’s oil drain It is a bold move from a revolutionary position that should be encouraged. This action is meant to be an active approach to sanctions and is therefore commendable.
۲) Although the launch of the oil bourse is an internal issue, it should not be restricted to the inside. As critics have argued, the oil bourse should be defined beyond national boundaries because oil is a global commodity. Here, along with the creation of the necessary infrastructure in the oil bourse , the energy diplomacy of the country is responsible and should be put in place to form a regional partnership on this stock exchange. The Russian states of Qatar and Iraq in the first round of this partnership can be defined and pursued. Only in the case of an oil bourse is a region that can slow down the boycott of oil and, from this perspective, such an effort is imperative.
۳) In the first step, the private sector should be encouraged to participate in the oil bourse . This encouragement is necessary not only for the purpose of creating a rent, but also for offsetting the risk of transferring and selling oil and returning the resulting currency, in which all this process is subject to sanctions.
۴) Because of the high turnover that oil purchases and sales, participation in the oil bourse may come from companies that are now called “products of production”. Although the principle of the existence of productive companies in the national economy can be criticized, but as a fact that they can not easily be abandoned, their participation in the oil bourse should be welcomed. These companies have high financial strength and the safest way to use this potential of the oil bourse market, which can be done in full transparency. Therefore, it should not be blackened beforehand about this partnership, and questioned their participation as rents.
۵) It is a fact that in the entire world oil bourse , the physical crude is traded less on the oil bourse , and the crude oil trade Mainly in the two, three major oil futures markets in the world, futures or, in other words, paper and derivative transactions. Therefore, creating opportunities for futures and paper futures is one of the important requirements for the continuation of the oil bourse , especially in its regional dimension.
۶) The success of the oil bourse in our country, like the newly born infant, requires special care from all public authorities responsible Is . Supervisory authorities must be present and participate in the process of its creation and development before the mismanagement of this market and the Ministry of Petroleum as the main trustee of this flow should have all its technical, consulting, legal and logistical facilities for Advancement of the goals of the oil bourse and provide transparent and professional information on the matter.
۷) According to experts, the following can help to address some of the problems:
- Making buyers attractive due to the risks of oil sanctions and financial sanctions.
- The rate and type of currency appreciation are determined.
- A clear baseline for the base rate of oil on the oil bourse .
- State guarantees for the continuation of delivery and delivery are guaranteed.
- A 50-day deadline for a buyer can be problematic given the current state of the boycott. Therefore, it is necessary to float this time.
- The need for more and better facilities for customers to clear and deliver the goods
- The need for diversification in the supply of products
- The creation of technical infrastructure, technology, and programming for oil transactions that we do not have experience.
At the end of this, it is necessary to note that There are dozens of reasons for the success of this project, but any great work at first is so, and with the national partnership, many of these barriers can be met. Therefore, all those who have the expertise related to this project and need to be involved in this project are necessary to help achieve this national goal.