BACKDOC: TALK IS ALWAYS CHEAP, SO WE WATCH THE OIL INVENTORIES TO SEE THE CRUDE REALITY! DOC IMO
Mountainman: Very INTERESTING……As I was READING This WEEKS OIL NEWS it Seemed to Me that there was A COLLECTIVE NEGOTIATION…A Calculation coming to a Head and MANY COUNTRIES were in a “PAUSE and REFLECT” Mode before Something BIG UNVEILED Itself!!!!!!!! All seems to be “PANNING” Out!!!!!!!!……LOL
Thunderhawk: Oil prices recover ahead of Iran-Iraq talks
Crude prices recovered Wednesday before a meeting between the Iranian and Iraqi oil ministers following a Saudi Arabia-Russia agreement to freeze output…
In early afternoon London deals, Brent North Sea crude for delivery in April jumped $1.02 to $33.20 per barrel, according to AFP.
US benchmark West Texas Intermediate for March delivery added 64 cents to $29.68 a barrel from Tuesday’s closing level.
Oil prices have tumbled about 70 percent since June 2014, hit by oversupply, sluggish demand and concerns over the global economic outlook.
Prices have come under renewed pressure from Iran’s return to world markets after the lifting last month of international sanctions linked to its nuclear program.
The commodity had enjoyed a surge from Friday to early Tuesday as Moscow and Riyadh — the world’s two biggest producers — prepared for talks on a rout that has seen the cost of a barrel collapse and hammered global markets.
But the conditional agreement between Saudi Arabia, Russia, Venezuela and Qatar to freeze output at record January levels, rather than make cuts, left a bad taste in the mouths of traders, sending both main contracts into reverse.
‘Sharp price falls were (Tuesday’s) market response to the joint decision of Saudi Arabia, Russia, Qatar and Venezuela to freeze their oil production at the January level for the time being,’ said Commerzbank analyst Carsten Fritsch.
‘This is because production will continue to exceed demand significantly for now, meaning that crude oil stocks will continue to grow.
‘How prices now perform will depend to a major extent on the signals sent out from Iraq and Iran.
‘There are indications that Iraq might be willing to cooperate, in which case Iraq’s rapid production growth of almost 1.0 million barrels per day last year would at least come to an end.
Iran is bound to want to up its output following its long battle for sanctions to be lifted.
The weekly US oil inventories report is meanwhile scheduled for publication on Thursday, one day later than normal owing to a public holiday on Monday.
http://www3.irna.ir/en/News/81968570/
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BACKDOC: IRAN SAYS THEY ARE REALLY GRATEFUL FOR LETTING US GET BACK ON OUR FEET IN THIS SLIPPERY MARKET! HEE HEE DOC IMO
Mountainman: In Other WORDS……..It’s to ALL our “BENEFIT” to COOPERATE Here and NOW……So we Can get The NEW GLOBAL REALITY at “FULL PROFIT POWER”……..For Us ALL……IMO
Thunderhawk: Iran supports moves to improve oil price: Zangeneh
Iranian Minister of Petroleum Bijan Zangeneh said Tehran supports any move to stabilize the situation in the international crude oil market and improve the price of the product.
Speaking to reporters following a joint meeting among ministers of oil and energy of Iran, Iraq, Venezuela, and Qatar here on Wednesday, he said, “Today we had a good meeting and the report of yesterday’s meeting (in Doha) was presented. We welcome cooperation between OPEC and non-OPEC (producers).”
“The decision taken so that OPEC members and non-OPEC (countries) freeze their production ceiling in a bid to stabilize the market and improve prices in the interest of consumer and producer is also supported by us,” he told reporters, Shana reported.
He added that participants of the Tehran meeting were briefed about Iran’s return to the market in the post-sanctions era and said, “We discussed about this issue with the Iraqi, Qatari, and Venezuelan ministers of oil and energy and they viewed the reality with a logical view.”
“I hope that with the efforts which have been initiated, we would witness improvement of the market’s situation in future,” Zangeneh said.
Regarding the effect of a recent meeting between OPEC members and non-OPEC countries, the Iranian minister said, “One should wait to see its effect on prices.”
“As I said, this is the initial step and we have to look at it positively. Buy I think everybody agrees that we have to monitor the market situation and reaction and to consult on the next steps if necessary,” he said.
Referring to non-OPEC countries’ readiness to cooperate, Zangeneh said, “As I was told, Russia in the capacity of the world’s largest oil producer, Oman and other countries have expressed their joining up which is a positive move and we approach it in a positive way.”
“This is good start,” the Iranian minister said.
http://www3.irna.ir/en/News/81968760/
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BACKDOC: EVEN THE SCARECROW WITHOUT A BRAIN GETS IT! WITH ADJOINING BORDERS AND INCOME PROPERTIES THESE TWO SHIA BROTHERS WILL CHOOSE JOY! HEE HEE DOC IMO
Thunderhawk: Iraq calls for expansion of ties with Iran
Visiting head of the Chamber of Commerce of Iraqi province Dhi Qar said in this western province here on Wednesday that Baghdad attaches great importance to expansion of all-out relations with Tehran
Abdul Razzaq made the remarks in a meeting attended by Iranian businessmen in Kermanshah province.
‘So far, the local businessmen in Kermanshah province have had an active presence in Dhi Qar markets,’ he added.
‘Iraq has expanded its economic relations with several countries, Iran in particular, recently,’ Razzaq said.
Touching upon Iraqi government 2016 agenda for reinforcing its economic sector, he added: ‘We are keen on fostering trade cooperation with Iran.’
‘Dhi Qar province enjoy huge untapped potentials for expanding trade cooperation with Iran,’ he added.
Located in south of Iraq, the industrial city of Dhi Qar has two million population.
http://www3.irna.ir/en/News/81967815/
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Mountainman: WELL”….IMO……OIL is being “SIGNALED” as A New PARADIGM Unfolds here…..S.A. and RUSSIA/Other OPEC/NON-OPEC Countries WORKING to Agree….As I said Before…Could This be The “SIGNAL” that Projects The Petro Dollars EXIT…..For The WORLD to SEE???……TIME will TELL as We Watch!!!!!!!!…..IMO
Thunderhawk: S. Arabia, Russia to freeze oil output
Saudi Arabia and Russia agreed to freeze oil output, which is already at near-record levels. This is the first coordinated move by the world’s two largest producers to counter a slump that has pummeled economies, markets and companies.
According to Bloomberg, it’s the first significant cooperation between OPEC and non-OPEC producers in 15 years and Saudi Arabia said it’s open to further action.
Oil pared gains after the accord was announced, signaling traders see no immediate end to the global supply glut.
The deal to fix production at January levels, which includes Qatar and Venezuela, is the “beginning of a process” that could require “other steps to stabilize and improve the market,” Saudi Oil Minister Ali Al-Naimi said in Doha Tuesday after the talks with Russian Energy Minster Alexander Novak.
Qatar and Venezuela also agreed to participate, he said.
Saudi Arabia has resisted making any cuts in output to boost prices from a 12-year low, arguing that it would simply be losing market share unless its rivals also agreed to reduce supplies.
Naimi’s comments may continue to feed speculation that the world’s biggest oil producers will take action to revive prices.
“The reason we agreed to a potential freeze of production is simply the beginning of a process” over the next few months, Naimi told reporters.
“We don’t want significant gyrations in prices. We don’t want a reduction in supply. We want to meet demand. We want a stable oil price.”
**Prices Fall
More than a year since the Organization of Petroleum Exporting Countries decided not to cut production, oil remains about 70 percent below its 2014 peak, hovering around $140 a barrel.
Supply still exceeds demand and record global oil stockpiles continue to swell, potentially pushing prices below $20 a barrel before the rout is over, Goldman Sachs Group Inc. said last week.
While Novak has said he could consider cuts if other countries joined in, Russia faces significant obstacles to doing so. The freeze is conditional on other nations agreeing to participate, Russia’s Energy Ministry said in a statement.
The group of producers plans to monitor output and prices for four months, Venezuelan Oil Minister Eulogio Del Pino said in an e-mailed statement.
“This is an announcement of a production freeze among countries whose production didn’t even grow recently,” said Eugen Weinberg, head of commodities research at Commerzbank AG in Frankfurt.
Oil erased gains in London after rising before the meeting amid speculation the countries would discuss production cuts. Brent crude fell 3.6 percent to settle at $32.18 a barrel Tuesday in London, having earlier climbed as much as 6.5 percent.
http://www3.irna.ir/en/News/81967553/
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BACKDOC: FOR IRAN, ITS TIME TO MAKE THE DONUTS! SHOW ME THE MONEY HONEY! I MEAN THE EUROS MR. BRIT! DOC IMO
Mountainman: I SEE IRAN Says……..”WHAT’S” Coming DOWN this GLOBAL OIL SLOPE and We are At “FULL SPEED AHEAD”……..SHIPS OF JOY…..MATEY!!!!!!!! IMO
Thunderhawk: Iran to export 2nd oil shipment to Europe
Deputy Oil Minister and Managing Director of National Iranian Oil Company Roknoddin Javadi said on Wednesday that Iran will export its second oil shipment to Europe before the end of February as the first shipment headed for the destination after lifting of sanctions.
Javadi said French, Spanish and Russian companies are purchasers of the Iranian oil.
On the whole, four million barrels of oil will be exported to Europe, he added.
Javadi said Iranian oil production will increase by 500,000 barrels by the end of this year.
Iran will raise its crude exports by one million barrels per day after elimination of sanctions.
http://www3.irna.ir/en/News/81968377/
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BACKDOC: IF YOU WOULD GET GOING AND DIVERSIFY YOUR ECONOMY YOU MIGHT NOT WORRY AS MUCH ABOUT RUDE CRUDE! LOL DOC IMO
Mountainman: Hey My Brother SHIITE/IRAQ…….Since we are PARTNERS….You Know “WHAT” I’m sayin…….Let’s Make Our Countries Productive….What You say IRAQ???…….Cool Your ALL IN too….RIGHT ON!!!!!!!!
Thunderhawk: Industry minister attends Iran’s second exclusive fair in Baghdad
Minister of Industry, Mine and Trade Mohammad Reza Ne’matzadeh visited different sectors of the second exclusive exhibition of Iran in Baghdad and discussed existing problems in the way of private sector export to Iraq by participants.
Nematzadeh in a meeting with Iraq’s acting Minister of Commerce and Minister of Labor and Social Affairs Mohammad Shyaa Sabbar al-Sudani in the morning signed a Memorandum of Understanding and then visited exhibition accompany with Iraqi minister.
In inauguration ceremony, Deputy Minister of Industry Hossein Esphahbodi presented a report on Iranian companies participated in the fair.
He said that 115 Iranian companies have presented their latest achievements in this exhibition.
The Iranian participating companies are in the fields of automobile, construction materials, oil, petrochemicals, electricity, water, telecommunication, food products, sanitation materials and home appliances.
Nematzadeh is due to visit production line of Saipa and Iran Khodro in city of Eskandarieh, south of Baghdad, which are commissioned by joint venture investment.
Iran’s exclusive exhibition will be open here until February 19, 2016.
http://www3.irna.ir/en/News/81968643/
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Mountainman: Gotta LOVE this HEADLINE….”NEW ERA”……..Yah It’s Called “NEW VALUE”……Coming to a COUNTRY near YOU!!!!!!!! (8) Ball Corner POCKET!!!!!!!!……..LOL…..
Thunderhawk: Deputy FM says new era for investment and technology transfer
Deputy Foreign Minister for Euro-American affairs Majid Takht-e Ravanchi said on Wednesday that following the removal of sanctions, a new era has begun for investment and technology transfer.
He was speaking during the opening ceremony of a meeting in Oslo to explore cooperation opportunities between Iran and Norway.
Norway boasts very good capacities in different industries, including maritime industry, oil and gas, nuclear safety and renewable energies, Takht-Ravanchi said, adding that Tehran welcomes the presence of Norwegian companies in Iran that he said can open a gate to the regional market.
He said that presence of representatives from Iranian state-owned and private companies in his accompanying delegation indicates the eagerness on the Iranian side to cooperate with Norwegian companies.
The meeting was attended by representatives from 150 Iranian and Norwegian companies.
http://www3.irna.ir/en/News/81968696/
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BACKDOC: HEY, I THINK THE TIN MAN GOT LUBED UP AND CALLED A MEETING! THE MEMO READ: I CHOOSE JOY!
Mountainman: “STRATEGIC” theme “AGAIN”……WATCH this “CONVERGENCE”…..for it Sets the “STAGE” Right NOW….and In shall we say….”FUTURE ENDEAVORS”=Ezekiel 38+39…….STRATEGY……for the “FUTURE as well….IMO
Thunderhawk: Expert: Iran, Russia cooperation vital for ME stability
Head of Russian Center for Political Technologies Sergey Mikheev said Tehran-Moscow cooperation in security and military areas was vital for consolidating peace and stability in the Middle East region.
Talking to IRNA on Wednesday, he stressed that both Iran and Russia pursued the objective of fighting terrorism and extremism in the region.
He said the two countries have already upgraded the level of cooperation to long-term strategic relation which is of higher premium.
He said the two countries have within the past year increased the volume of cooperation on regional developments.
He referred to developments in Syria as one outstanding case of high-level collaboration between Iran and Russia which has forced other regional and international players like the US and Turkey to change their policies.
The Russian expert said the convergence between Iran and Russia came as the result of their shared goal of combating terrorism and extremism.
http://www3.irna.ir/en/News/81967598/
Mountainman: Let’s FACE it…….EUROPE is In “DIRE” need RIGHT NOW and They NEED ALL the “LIFE LINES” they can Get!!!!!!!!……..IMO
Thunderhawk: Swiss firm ready for petchem technology transfer to Iran
Managing Director of National Petrochemical Company (NPC) Marziyeh Shahdaei said foreign firms are required to transfer modern technology when embarking on joint ventures with Iran as a Swiss firm expressed readiness to cooperate with Iran.
“NPC supports investment in the petrochemical industry’s upstream and downstream sectors and Swiss companies can participate in its projects in line with this policy,” she told a delegation from Sulzer company.
Thorsen Winter Greze, a senior Sulzer official, said that the firm is interested in returning to Iran’s petrochemical projects, according to Shana.
“We are ready to cooperate in transfer of technology to Iran’s petrochemical complexes as well as in licensing of Iranian companies,” he added.
The Sulzer Executive Committee member also said the firm has established ties with two Iranian petrochemical companies following removal of sanctions.
http://www3.irna.ir/en/News/81968358/
Mountainman: Interesting “DATE” IRAN……Seems Your BROTHER in Business IRAQ also was “CELEBRATING” as WELL……Are YOU Guys SHARING from The SAME….”WELL”……….IMO
BACKDOC: REMEMBER, IRAN SAID THEY WOULD NOT RE-ENTER WITHOUT IRAQ!
COME ON DORTHY! CLICK YOUR RED SLIPPERS AND SING US A SONG!
THE MORE IRAN GETS DONE THE CLOSER WE ARE TO SEEING THE WIZARD!
I CHOOSE JOY! DOC IMO
Thunderhawk: Iran Post Bank re-connects to SWIFT
Managing Director of Iran Post Bank Khosro Farrahi said on Wednesday that the bank has been re-connected to Society of Worldwide Interbank Financial Telecommunication
The re-connection was made on Sunday February 14, he said.
The Brussels-based Swift facilitates exchange of financial transactions among world financial institutions.
After implementation of the Joint Comprehensive Plan of Action (JCPOA) Iran Post Bank took required and timely action to reconnect to SWIFT and the task was accomplished on February 14, he said.
Central Bank of Iran (CBI) allocated special code and password to reconnect Iran Post Bank to SWIFT on Sunday.
SWIFT is used by nearly every bank around the world to send payment messages that lead to the transfer of money across international borders.
It provides a wide range of service including transmitting letters of credit, payments and securities transactions among 9,700 banks in 209 countries.
A central theme of the sanctions was putting restrictions on Iran’s banking transactions with the international financial institutions through various mechanisms including shutting SWIFT services to the country.
However, it became off limits to Iranian banks in 2012 after the implementation of the US-led sanctions.
Accordingly, around 30 Iranian banks were blocked from using SWIFT services, literally cutting off Iran from the global banking system.
http://www3.irna.ir/en/News/81968455/
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Hoot: backdoc i,m just a little confused ,,,,it is nice to see iraq and iran working together to make money,,,,,what happened to iran going global on the 18th ?is that still in play or is there a delay…
BACKDOC: REMEMBER THOSE WERE THEIR WORDS! AND TO SOME EXTENT WE SEE THAT UNFOLDING BEFORE OUR EYES! SOMETIME BETWEEN NOW AND MID YEAR ALL WILL BE COMPLETE. BE PATIENT FOR IT TO SHOW AND CHOOSE JOY! DOC IMO
Hoot: thank you sir….well it is not hard to see iran is more then ready…..here is to hoping that after the cbi gets done celebrating maybe they will make time to get there monetary reforms done and catch up with rest of the world….
BACKDOC: IRAQ IS NOT DONE BECAUSE ITS NOT THEIR TURN YET! SOON! SOON! DOC IMO
Mountainman: HOOT ……..That’s “THE POINT”=…..IRAQ can “CELEBRATE” because IRAN has ACCOMPLISHED sooo MUCH SINCE their “SANCTIONS” were Lifted On….WHAT???…..Yup…”IMPLEMENTATION DAY”….JANUARY 17,2016……and That “SET” the FRAMEWORK for “A LAUNCH”……”GLOBALLY”……In 1 MONTH……LOOK at “WHAT” IRAN has done……for THEIR TWIN=IRAQ…..BIG BROTHER/IRAN…..has got Your Back…In other WORDS= WHY??? THE US made “THE DEAL” w/IRAN…..IMO……..(8)BALL CORNER POCKET!!!!!!!!………LOL…..
Hope this BROADENS to WHAT DOC is telling You……IMO
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Mountainman:WOW…..IRAN 5.5% GROWTH…..This YEAR……That’s Almost 2 times That of the USA Meager Growth Last Year….You “MUST” be EXPECTING a MAJOR GLOBAL LAUNCH in More “TRADE and A VALUE”……..IMO Blessings,Mountainman
Thunderhawk: General Electric Oil &Gas firm willing to develop business with Iran
President and CEO of General Electric Oil & Gas Company Lorenzo Simoneli in a meeting with Deputy Governor of Central Bank of Iran Akbar Komeijani said that the company is willing to develop business with Iran.
Simoneli said that GE has activities in many important industrial fields such as oil, gas, electricity, road construction, airplane and hospital equipment.
Komeijani said that Iran welcomes joint venture investment in oil, gas, mines industries, manufacturing sector and services for domestic consumption and possibility to export to regional markets.
He said that Iran’s new government and the Central Bank of Iran are obliged to observe monetary and financial discipline in a bid to reduce inflation and increase growth rate of the national economy.
The Iranian official said that there is bright prospects for Iran’s economy in year 2016 and that the International Monetary Fund (IMF) and the World Bank have anticipated growth around 5.5 percent.
Meanwhile, directors of foreign exchange department of CBI presented a report about foreign investment regulations and role of banking system to facilitate the joint venture investment.
The London-based GE Oil & Gas firm is originally an American company active in production of drilling equipment and oil refinery as well as manufacturing under-sea pumps.
During the sanctions, General Electric could receive authorization from US government to sell medical equipment to Iran.
http://www3.irna.ir/en/News/81968449/
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BACKDOC: THE GLOBAL NEW REALITY SEEMS TO BE BRINGING US A NEW REALITY FAR BEYOND FINANCIAL!
WHEN UP SEEMS DOWN! AND DOWN SEEMS UP!
LIKE SNAGGLEPUSS WOULD SAY, EXIT STAGE LEFT! LOL DOC IMO
Thunderhawk: NATO Official says cooperation with Iran ‘possible’
The North Atlantic Treaty Organization (NATO) does not exclude that its cooperation with Iran is possible in the future, NATO Secretary General’s Special Representative for the Caucasus and Central Asia James Appathurai, staying on visit in Azerbaijan, said .
According to Appathurai, the agreement with Iran regarding its nuclear program is a right step toward possible cooperation.
‘We have received no indication from Iran, there are no discussions within NATO about establishing relations. I don’t exclude that it might happen at some point in the future,’ Appathurai said on Tuesday, as quoted by Azerbaijan’s Trend News Agency.
In July 2015, Tehran and six international mediators — Russia, China, the United States, the United Kingdom, France and Germany — reached a historic deal on Iranian peaceful nuclear program, which is set to ensure the peaceful nature of Iran’s nuclear program in exchange for the termination of anti-Tehran sanctions.
In mid-January, the sanctions were removed after the International Atomic Energy Agency verified Tehran’s compliance with the nuclear agreement. The move makes it possible for Iran to develop relations with different military-political and economic international entities and states, which have been frozen for decades.
http://www3.irna.ir/en/News/81967658/
Thunderhawk: HEY DOC IS THIS THE SNAGGLEPUSS YOUR TALKING ABOUT!!!! LOL –
CLASSIC https://www.youtube.com/watch?feature=player_embedded&v=k4qFxTTi8q0#t=0
BACKDOC: HEAVENS TO MERGATROID THATS HIM! EXIT! STAGE LEFT!
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BACKDOC: IRAN WILL BE TO THE SILK ROAD WHAT IRAQ IS TO THE EMPIRE COUNTRIES!
LOOK FOR GREECE AND CATALONIA REGION IN SPAIN WITH BARCELONA TO JOIN THEIR PARTY!
THE TPP WILL EVENTUALLY FORCE THE “ALL FOR ONE AND ONE FOR ALL” DOC IMO
Mountainman: Yes DOC I Agree…..THE GLOBAL DECK is So STACKED Right NOW…..that a BABIES WHISPER could Cause ALL to FALL into PLACE…..IMO
Thunderhawk: Brazil to ditch dollar in trade exchange with Iran
Brazil will accept payment from Iran in euros and other currencies for planes, cars and machinery to sidestep lingering US sanctions on the oil-rich nation, Trade Minister Armando Monteiro said on Tuesday.
Monteiro is the first Brazilian official to confirm that Latin America’s biggest economy could accept payment in other currencies including the euro from Iran, which is forbidden from using the US financial system under the sanctions.
Brazilian President Dilma Rousseff could visit Iran this year to bolster exports, he said.
‘Everyone is racing after Iran now … The trade potential is very big,’ said Monteiro. ‘We will find ways to settle payments, the type of payment and currency.’
Monteiro said Brazil aims to triple trade flows with Iran to $5 billion by 2019.
Rousseff lifted UN-imposed sanctions against the OPEC nation last week after meeting with the Iranian ambassador, hoping to bolster trade between the two nations, which have enjoyed warm ties for years despite tensions with the West.
Although it is not clear whether any attempt to circumvent the U.S. financial system could raise tensions with Washington, Brazil’s leftist government in the past has annoyed the United States by drawing closer to Tehran.
http://www3.irna.ir/en/News/81967864/
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BACKDOC: WITH THE SHENZENG AGREEMENT IN TATTERS FROM MIGRANT OVERLOAD, A BREXIT COULD BE A CURTAIN CALL FOR THE EURO! DOC IMO
Thunderhawk: Deputy FM to visit Spain on Thursday
Daily Diplomat writes that Iran’s Deputy Foreign Minister for Euro-American Affairs Majid Takht-Ravanchi will visit Spain on Thursday for periodic diplomatic dialogue with Spanish officials on ways of consolidating bilateral ties.
Iranian and Spanish foreign ministry officials meet and confer with each other every six months to hold diplomatic talks.
Diplomat said periodic talks between Iranian and Spanish political officials indicates interest of the Spanish policy makers to boost ties with Tehran after the Vienna nuclear accord.
http://www3.irna.ir/en/News/81968462/
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Mountainman: “HOLY OIL SPICKETS”……AGAIN….$ “OIL SWAPS” $….”COMPETITION IS A SIN” >>>>ROCKEFELLER said…..That’s WHY??? “THEY” Created The FEDERAL RESERVE= Bankers were TIRED of BLOODYING each other OVER “COMPETITION” and so “THEY” DECIDED to *”COOPERATE”* and Make MONEY TOGETHER and “NOW” this is SAYING THE SAME “IDEAL”……..
….But “NOW” In TERMS of “OIL” on A “GLOBAL SCALE” WHICH Means (ALL) COUNTRIES EVEN the USA “PETRO DOLLAR”……..We KNEW The DEPEG would be REVEALED……..ie: In “PUBLIC VIEW” and IMO……”THIS IS As “CLEAR” as We will “SEE IT” !!!!!!!!………thus the “NEW GLOBAL REALITY “SWAPS” are “NOT” just in ONES DOLLARS/CURRENCY…..though the “PROFITS” will be “HUGE” !!!!!!!!……(8) BALL….CORNER POCKET!!!!!!!!……LOL
*NOTE*……READ REREAD and READ AGAIN…….TOO Much to “Cover” Right NOW!!!!!!!!….IMO…….but, WILL be “COVERED” SOON!!!!!!!! Blessings,Mountainman
Thunderhawk: *NOTE*…..”READ CAREFULLY”……..HUGE…..IMO…….MM
From OPEC to NOPEC
I asked Chris Cook, a Senior Research Fellow at University College London his view of the market
“For the two biggest global oil producers to ‘freeze’ production at record levels left the market unimpressed at best and unbelieving at worst. In the absence of significant coordinated production cuts the market price will fall to or even through $20/barrel and will not regain $50/barrel for years, if ever.”
If that is the case then, in my view, Saudi Arabia is in deep domestic trouble. Several observers believe that current military adventurism by the Saudis is due firstly to internal factional politics; secondly, that such nationalism serves as a possible means of distracting the population from the approaching end of a very privileged lifestyle; and thirdly, it is simply a means of preserving a measure of national dignity.
—Cooperation or competition?
I asked Mehdi Moslehi of Petro Scotland on options available to Iran in their relationship with Saudi Arabia and the oil market generally, and he said, “There is a very simple choice. Cooperation or Competition? There is a great deal of profit to be made from competition and conflict by a few, at the expense of the many. OPEC has been destroyed – aided and abetted by non-OPEC members producing flat out – by competition to sell oil as a commodity and the current ‘race to the bottom’.”
But what form could energy cooperation take, I asked? And how may we get there?
Mr Cook explained: “We have seen how Saudi Arabia has maintained market share with the U.S. through a refining joint venture, at the expense of suppliers such as Nigeria in particular. They are exploring further joint refining ventures in China and elsewhere. Iran is rapidly reopening oil sale agreements with Europe, and these are aimed at achieving security of demand and re-establishment of market share, but this will necessarily be at the expense of others in the market.”
But surely this will make the market situation worse, not better?
“Of course. That is why the only solution is the creation – as President Rouhani suggested at Davos in 2014 – of new multilateral institutions for the oil market. An energy Bretton Woods-style conference or process is urgently necessary, involving both energy producers and consumer nations.”
Is this what you mean by cooperation? I asked Mr Moslehi.
“I envisage what is essentially a consortium of producer nations engaging & cooperating directly with a consortium of consumer nations: a Cooperative of Cooperatives if you like.”
But where would banks and oil companies fit in such a market model? I asked Mr Cook.
“Simply put, oil companies do not produce oil – they buy and sell it for a $ profit- while banks print dollar and euro claims over oil & gas – they cannot print the oil & gas itself. These middlemen, and their exchanges and banking systems created a monster which has built, controlled, and has now finally destroyed, the oil market as we have known it since 1973.”
Mr Moslehi, who is a noted expert in market networks and systems explained further. He said: “I believe that the direct instant connections of the internet are leading to a transition by middlemen such as these towards the provision of services instead.”
But surely these middlemen will resist this, I said. As they say in the U.S., why would turkeys vote for Christmas?
“You would think so”, replied Mr Moslehi, “But in fact service providers need very little financial capital for their operations, since they are essentially providing intellectual capital instead. So we are already seeing transformation by energy companies such as Schneider and E:ON away from a transaction model towards a service model”.
—Back to the future?
Mr Cook agreed with Mr Moslehi’s view: “In fact, the future is visible in tried and tested models from the past. Those familiar with the world of shipping will know that there are certain risks that members of Lloyds of London – the principal global insurance market – will not take. Vessel owners – including Iranian owners – therefore formed associations known as Protection & Indemnity (P&I ) Clubs about 140 years ago to mutually assure these risks, and five years later appointed a service provider – Thomas Miller – the company which administers the clubs and manages the risks to this day.”
I observed that his sort of mutual risk assurance is well known in the Islamic world, and I asked Mr Moslehi if such mutual institutions might apply to the oil and gas market.
“Precisely. When we think of institutions, we think of organisations, such as OPEC, the Energy Charter Treaty organisation; World Trade Organisation and so on. Personally, I believe we have enough organisations as it is and do not need any more. What the oil market does need however, is not a new – OPEC 2.organisation – but agreements or protocols (there are numerous protocols in the world of Information Technology) which consist of mutual risk and production sharing agreements to a common purpose.”
What do you think of this? I asked Mr Cook.
“I have advocated just such global agreements & protocols for more than 15 years and I refer to the use of the P&I model in the energy markets as an ‘Energy Clearing Union’. But unlike the Clearing Union unsuccessfully proposed by the great economist J M Keynes at Bretton Woods in 1944, this would not have a centrally issued currency, with organisations and bureaucracy like the World Bank and International Monetary Fund imposed by the U.S.”
—Iran and Saudi Arabia
What would your advice be to Iran in dealing with Saudi Arabia? I asked Mr Cook and Mr Moslehi. Mr Moslehi sees the situation very rationally and strategically.
“No matter what differences may exist in cultural, religious or ideological matters, there is always scope for cooperation in relation to the essential and deeply connected resources of energy and water. So while there will continue to be conflict in relation to upstream oil and gas sales, there is a shared common interest downstream in increased energy efficiency and new energy generation and distribution infrastructure.”
Mr Cook’s advice was more specific. “Firstly, gas for oil swaps would make sense, whereby Iran would supply a flow of gas in exchange for a flow of Saudi oil, thereby reducing Saudi carbon intensity and maintaining gas production and use in the region, without wastefully shipping many thousands of kilometres at vast energy cost.
Secondly, there is the possibility, within a suitable neutral framework, of Energy Free Zones covering disputed joint fields and with gas to power generation on-site. The possibilities through the use of energy swaps and credits are endless.”
Finally, I asked whether we are now seeing a move from OPEC to NOPEC?
Both agreed, but pointed out that a valuable role potentially exists for OPEC as a founder and service provider of a new global energy market framework. Moreover, both considered that Iran, due to prolonged exclusion from the market, is uniquely well placed to lead a constructive initiative to create such a framework.
As an observer of Iran’s domestic politics it is my earnest hope that a newly elected administration will be open to such constructive policy making, and that they will look forward to energy cooperation rather than back to energy competition and conflict. (Mahmoud Khaghani, Tehran Times)
http://www3.irna.ir/en/News/81968958/
Mountainman: “WATCH OUT” here….IMO……US MEDIA is DOUBLE SPEAKING here because they don’t Want You to KNOW what’s UNFOLDING w/OIL as it PERHAPS Helps “REPRICE”….The MARKETS…….IRAN “IS” on BOARD per previous Articles….IMO
Thunderhawk: WAY TO GO IRAN !!!
Oil prices climb as Iran endorses oil output cap
Crude futures rose in Asian trade on Thursday after Iran welcomed plans by Russia and Saudi Arabia to cap production, although analysts said the move would not lead to any output cuts and Tehran offered no action of its own.
After oil prices rose in the previous session as much 8 percent, commentators suggested markets had overreacted to Iran’s support for the caps and said the Russian-Saudi move would not likely reduce the global surplus.
“I share the consensus view that producers’ are unlikely to reach an agreement (on cuts), the rationale being the need to satisfy two conditions,” said Ric Spooner, chief market analyst with Sydney’s CMC Markets.
“First, any price gains must offset losses achieved from volume cuts – production cuts must be meaningful – sufficiently large to achieve a substantial price increase. And they will have to involve everybody – all the major (producer) players. That will be difficult to achieve,” he said.
Brent futures added 42 cents to $34.92 a barrel by 0409 GMT, having closed 7.2 percent higher in the previous session after hitting an intraday high of $34.99.
U.S. crude rose 60 cents to $31.26 a barrel, having finished 5.6 percent higher in the previous session after touching a high $31.49.
Oil prices would likely remain volatile, Spooner said, as traders and investors reacted to news and rumours about curbs on output growth and possible cuts in production.
Iranian Oil Minister Bijan Zanganeh met counterparts from Venezuela, Iraq and Qatar on Wednesday but did not say if Iran would cap its output in keeping with the move by Russia, Saudi Arabia and Iraq.
“The agreement will do little to reduce the current supply glut,” BMI Research said in a note on Thursday.
A rebalancing in supply and demand is more likely in the second half of 2016, BMI said.
Iran’s OPEC envoy Mehdi Asali said it was “illogical” to ask Iran to freeze production levels in comments to the Shargh daily newspaper before the talks on Wednesday.
Iran exported around 2.5 million barrels per day (bpd) of crude before 2012, but sanctions, imposed by world powers to curb Tehran’s nuclear programme, cut its oil shipments to about 1.1 million bpd.
The sanctions were lifted last month, allowing Iran to resume selling oil freely in international markets.
Oil prices also gained support after U.S. crude stocks unexpectedly fell by 3.3 million barrels last week to 499.1 million, data from the American Petroleum Institute showed on Wednesday.
“We continue to eye crude production and would think that it should start to decrease. Should this happen, we would think that this could be the start of U.S. production cuts due to low oil prices,” Singapore’s Phillip Futures said in a note.
Analysts had expected crude inventories to climb by 3.9 million barrels in the week to Feb. 12, according to a Reuters poll on Tuesday.
Oil prices may gain further direction when the Department of Energy’s Energy Information Administration releases official oil inventory data later on Thursday
http://in.reuters.com/article/global-oil-idINKCN0VR00S
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