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Iran (the second largest provider in OPEC) is the first fossil energy producing nation that has started (on February 17, 2008) its own internet based oil/gas bourse and exchange in the free trade zone on the Persian Gulf Island of Kish. The Iran Oil Exchange (there is no official English name given) must compete with the old two centers of fossil energy trade the ICE in London and the NYMEX in New York. The main difference is that on the Iran Oil Exchange trades can be made in any currency accept US dollars, while trades will be preferred in Euros. This gives investors the possibility to hedge oil against other currencies than the dollar. Iraq changed in 2000 also to the euro, but this was switched back to US dollars after the invasion of the USA in Iraq in 2003. Many others OPEC and non-OPEC members will follow the Iran Oil Exchange example soon as result of the market polarity change. Venezuela certainly will be the next OPEC member that will open its own Oil Exchange with trade in other than US dollar currencies. Russia also has a historical problem with US hegemony and also will start its own Moscow Oil Exchange. The Russian Government is not forgotten the from 1988 till 1991 during USA/Saudi managed global oil market oversupply, who lead to the financial collapse of the USSR and also from its smaller and its less federal dominated but quickly failed or even never from the meeting tables erected successor Commonwealth of Independent States. In Norway there is also already discussion ongoing about the opening of an own Oil Exchange linked to the Oslo Börs or to Nordpool (the Scandinavian Power Exchange) which will also only trade in Euros. By than the London based ICE and the New York based Nymex (with their declining market share) will open their systems for trades in other than US currencies and the dollar will lose its hegemony in the energy market. As the economy moves to resources production nations. Later on the world's major regular stock exchanges will be also their, causing an irrefutable decline for the two current major financial centers of Wall Street and the London Financial City District. Dubai is steaming forward to this position at rapid speed.

Author: Gijs Graafland

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