Wednesday March 19, 2008

Venezuela opts for oil contracts in euros

channelnewsasia.com :

Venezuelan state oil giant PDVSA has decided to sign some oil contracts in euros in the face of a plummeting dollar, local media reported, citing officials. Venezuela, Latin America's leading petroleum producer, has previously backed Iran's proposals for OPEC to abandon the dollar and use the euro for oil pricing. But the Organisation of Petroleum Exporting Countries has rejected the idea, at least in the short-term.

The head of the journal Petroleum World, Elio Ohep, said the shift to euros was "good business" for Venezuela. Venezuela produces 3.3 million barrels of oil a day, according to official figures, and 2.4 million according to the International Energy Agency. Half of its production is sold to the United States market.

- The oil producers are starting to back away from the falling US dollar. The Arabs are re-thinking their currency pegs to the dollar, which has been inducing inflation in their domestic economies. And then we had the opening of the Iran oil exchange, followed by the Russians switching some oil trading from to rubles.

See also :

1. Russia quietly prepares to switch some oil trading from dollars to rubles
2. Iran starts oil exchange in Tehran

(2008-03-19 23:54:17 SGT) [Energy] Permalink

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