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A petroeuro is a petroleum trade valued in the euro as opposed to the US dollar (a petrodollar). Trading of any natural resource, including petroleum, is controlled through trading partnerships involving both exporters and importers of the resource, in a defined marketplace, and through a trade agreement. The major countries holding petroleum reserves since the decline of US production are dominated by OPEC, and hence, OPEC may choose dollars, euros, yen, or any currency providing perceived advantage, politically or economically. Since the OPEC's agreements of 1971 and 1973 oil is exclusively sold in US dollars. This created a permanent demand for dollars on the international exchange markets.^[4] As of 2005, OPEC continues to trade in petrodollars, but some OPEC members (such as Iran and Venezuela) have been pushing for a switch to the euro.

Since the beginning of 2003, Iran has required euros in payment of exports toward Asia and Europe, though prices are still expressed in US dollars [1]. Iran is planning to open an International Oil Bourse (IOB, exchange), on the free trade zone on the island of Kish ^[2], for the express purpose of trading oil priced in other currencies, including euros. This will establish a euro based pricing mechanism, or "oil marker" as it is called by traders. The three current oil markers are US dollar denominated, which include the West Texas Intermediate crude (WTI), North Sea Brent Crude, and the UAE Dubai Crude.

The opening of the IOB had been planned for March 20, 2006, the Iranian New Year 1385^[1], but has been delayed. It was expected to open sometime in the summer of 2006.^[3]

Contents 1 Supply 2 Demand 3 External links 3.1 Cited 4 Other links 5 See also

Supply data from list of net exporting countries

Sales in euros are speculation at this point for countries other than Iran and based on statements concerning target percentages of reserve currencies and other guesses.

Supply in euros Country bbl/day Russia 6 670 000 Norway 2 290 000 Iran 2 550 000 Venezuela 2 360 000 Algeria 1 680 000

Supply in Both Country bbl/day % euro (est) United Arab Emirates 2 330 000 40 Nigeria 2 190 000 30 Mexico 1 800 000 10 Libya 1 340 000 20 Kazakhstan 1 060 000 50 Qatar 1 020 000 20

Supply in Dollars Country bbl/day Saudi Arabia 8 730 000 Kuwait 2 200 000 Iraq 1 480 000

Demand data from CIA World Fact Book.

Demand in euros Country bbl/day Germany 2,677,000 France 2,060,000 Italy 1,874,000 United Kingdom 1,722,000 Spain 1,544,000 Iran 1,425,000 Netherlands 920,000 Belgium 624,200 Poland 479,200 Greece 435,700 Sweden 346,100 Portugal 326,500 Switzerland 258,900 Norway 257,200 Finland 219,700 Ireland 175,600 Denmark 188,300

Demand in Both Country bbl/day % euro (est) China 6,391,000 30 Japan 5,578,000 40 Venezuela 530,000 50

Demand in Dollars Country bbl/day United States 20,030,000 Russia 2,800,000 India 2,320,000 Canada 2,193,000 South Korea 2,168,000 Brazil 2,100,000 Saudi Arabia 1,775,000 Mexico 1,752,000 Indonesia 1,155,000 Taiwan 915,000 Australia 875,600 Thailand 851,000 Turkey 715,100 Singapore 705,000 Egypt 566,000 Malaysia 510,000 South Africa 484,000 Argentina 450,000 Ukraine 401,000 Pakistan 365,000 Philippines 335,000 United Arab Emirates 310,000 Nigeria 310,000 Kuwait 305,000 Austria 286,200 Israel 270,100 Hong Kong 260,000 Belarus 252,000 Syria 240,000 Libya 236,000 Romania 235,000 Algeria 232,000 Chile 228,000 Kazakhstan 221,000 Vietnam 216,000 Czech Republic 185,200 Morocco 158,000 Peru 157,000 Ecuador 155,000 New Zealand 151,900 Colombia 134,100 Hungary 134,100 Bulgaria 107,000

1. ^[4] [2],
2. ^a  The Iranian line in the sand, Dan Crawford, The Republic (Vancouver), August 18 to 31, 2005
3. ^b  Kish Oil Exchange Planned, Iran Daily, January 24, 2006
4. ^c  A frenzied Persian new year, March 22, 2006, Asia Times

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