11 / August / 2019 10:51

Iran Energy Exchange to Offer Light Crude Oil on Tuesday

EghtesadOnline: Light crude oil will be offered Tuesday in the international ring of Iran Energy Exchange, according to a notice on the IRENEX website.

News ID: 748144

Two million barrels of oil belonging to the National Iranian Oil Company will be on offer at a base price of $57.98/barrel. 

Those interested are required to buy at least 1,000 barrels of oil for land delivery and 35,000 barrels for sea delivery. Buyers can settle the payments 90 days after the transaction.

As per law, the Oil Ministry is obliged to offer on a monthly basis light and heavy crude plus natural gas condensate via the energy exchange, Financial Tribune reported.

However, the move did not produce the desired results. Despite several offers over the months the state-owned NIOC has barely managed to sell 1.1 millions of crude oil. 

Selling oil in the energy market is an initiative to diversify trading to involve private firms in the heavily state-controlled oil sector.

Role of the private sector in oil export has gained traction, particularly after the new US sanctions, which among other things, has hit the oil industry hard, aiming to paralyze the oil-based economy.

 

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