The Petroeuro

A petroeuro is a petroleum trade valued on 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. 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.

In early 2006, apparently on March 20, 2006^[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. In 2003, Iran started trading with its European and Asian partners using the Euro. The Iranian Oil Bourse, however, will also establish a fourth 'oil marker', dominated by the Euro.

Source: Wikipedia