Venezuela might price oil in euros

Venezuela might consider pricing its oil in euros following Iran's declaration that it is contemplating adopting the European Union's single currency in place of the US dollar to price its oil exports, President Hugo Chavez said today.

"That is an interesting proposal made by the president of Iran," he told Britain's Channel 4 news. "We are also free to choose between the dollar and the euro. I think the European Union has made a large contribution with the euro.

"So what the president of Iran says ... is recognising the power of Europe -- they have succeeded in integrating and have a single currency competing with the dollar, and Venezuela might also consider that -- we are free to do that," Chavez said.

Venezuela is the world's fifth largest oil exporter.

Iranian President Mahmoud Ahmadinejad said earlier this month that Iran plans to launch an oil bourse on the Gulf island of Kish within the next two months.

Western media and think-tanks have speculated that Iran's oil exchange could undermine the importance of the dollar by pricing the world's fourth biggest exports of crude in euros.

Iran has said the bourse is not meant to challenge the ICE and Nymex crude futures exchanges, the benchmarks for world oil trade, but is simply intended to increase liquidity in Gulf region energy trading.

- REUTERS