Iran elected to chair OPEC in 2011

The presidency of OPEC, which traditionally rotates among its members, has been gi ven to Iran for the first time since the Iranian Revolution. OPEC ministers elected Iran’s oil minister, Masoud Mirkazemi, to chair the 12-nation organization during 2011. The Iraqi oil minster, Hussain Al-Shahristani, will serve as alternate president. The members reportedly elected Iran unanimously. It is not certain whether Iran will try to use the position to persuade the organization to base its oil prices on some other currency than the U.S. dollar, or perhaps a group of currencies. Iran along with its allies Venezuela and Ecuador have spoke out for the change, citing the weakness in the dollar. So far, however, the group has not taken up the issue.
Iran’s election as OPEC president comes the US and the EU have increased pressure on Iran to curb its nuclear program. The U.S. government enacted a policy in 2010 that penalizes companies that sell refined petroleum products to Iran. The EU has focused its sanctions on the export of equipment for Iran’s energy sector.
Mirkazemi told reporters at the meeting in Vienna that the sanctions have had “no impact whatsoever,” instead had spurred Iran’s energy sector to become self-sufficient. Iran is the second-largest oil producer in OPEC with the second-largest proven reserves behind Saudi Arabia. In 2009, Iranian crude production was about 3.8 million bpd, but because of limited refining capability it has had to import up to 40% of its refined products.