Iran hits out at oil quota 'violators'

Bob van der Valk submits: We are in the middle of world events, which may result in the eventual break-up of the Organization of the Petroleum Exporting Countries (OPEC). It is an intergovernmental organization of twelve developing countries, made up of Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela (See Chart).

TEHRAN, Iran — A 6.1 magnitude earthquake killed at least 37 and injured hundreds more in a sparsely populated area in southern Iran on Tuesday, Iranian officials said, adding that it did not damage a nuclear plant in the region. The report said the earthquake struck the town of Kaki some 96 kilometres southeast of Bushehr, a town on the Persian Gulf that is home of Iran’s first nuclear power plant, built with Russian help.

The Organization of Petroleum Exporting Countries (OPEC) today announced that its members could not reach an agreement to change OPEC's production quotas. How significant is that announcement? In my opinion, not very. Forbes provides these details:

Relations between Saudi Arabia and the Islamic Republic of Iran have been stressful ever since the latter’s 1979 revolution. The tension extends into the pair’s working relationship within the Organization of the Petroleum Exporting Countries, with Iran frequently arguing for production quota increases to increase its earning from oil exports, while Saudi Arabia often intervenes, raising or lowering its own production in an attempt to stabilize prices for the cartel.

Inquiring minds note that Iran removes euro and dollar from its trade exchanges. Minister of Economic Affairs and Finance Shamseddin Hosseini said Monday that Iran would no longer use euro and dollar in its trade exchanges according to a decision made by the government's economic working-group. Iranian state news agency IRNA writes about this.

Iran, which chairs the oil producers' cartel OPEC, said on Tuesday it expects global crude prices to further rise by the end of 2011."The price of oil depends on two things. First, the fundamentals, including supply and demand and then the political, psychological and unforseen elements. Based on these factors, oil prices should increase again by end of the year," Iran's representative to OPEC, Mohammad Ali Khatibi, told reporters in Tehran.He said oil demand in 2001 will be high, between 1.3 million barrels per day to 1.6 mbpd.