Change in oil dollar denomination unlikely - oil cos

Tue Oct 2, 2007 1:24pm BST
 
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LISBON, Oct 2 (Reuters) - Oil prices are likely to remain denominated in dollars despite the currency's weakness, chief economists for Chevron and Total said on Monday.

"I don't believe in such a change, I think a lot would have to happen for that to become a reality," Edgard Habib, chief economist for Chevron Corp (CVX.N), told an energy conference in Lisbon.

Pierre Sigonney, chief economist for Total , said several world economies are linked to the dollar, so it is unlikely the oil prices could be denominated in a different currency.

"We live in a dollar world and it should continue to be so," he said. "It's a problem for european oil companies, because most of our costs are in different currencies, but it's something we have to face."

Some oil producing countries have started to price their oil exports in different currencies, partly due to the sharp decline of the dollar this year.

Iran, the world's fourth-biggest oil exporter, has boosted oil export earnings in non-U.S. dollar currencies to 85 percent, an Iranian official was quoted as saying on Tuesday.

 

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