Iran Energy Exchange to Hold Next Round of Crude Oil Sale on Sunday

EghtesadOnline: The National Iranian Oil Company says the next round offering light crude oil on the international ring of the Iran Energy Exchange will be held on Sunday (Nov. 11).

News ID: ۷۴۶۲۰۰

10 November 2018

A report on the company’s official website said 700,000 barrels of crude at the base price of $76.29 per barrel will be on offer.

Regarding the bearish trend in the oil market, the NIOC is likely to reduce its base price as in the previous offering.

US oil prices tumbled another 1.6% to $60.67 on Thursday to settle in a bear market, Financial Tribune reported.

As was the rule in the first phase, the minimum volume that should be purchased is 35,000 barrels.

In the first sale held on October 28, eight cargos of 35,000 barrels each at the price of $74.85 per barrel were purchased on the stock market by three brokerages.

According to the Securities and Exchange news agency, demand was strong for the black gold in early trading with 10 bids made within the first minutes. The highest bid was $69.82 for a barrel of oil and the lowest $61.85. Later in the day, one bidder bought eight cargos of 35,000 barrels each.

IRENEX managing director, Ali Hosseini, told SENA that foreigners can also apply for trading codes and buy Iranian crude on the bourse. He said more than 100 trading codes have been given to overseas entities to enable them trade in oil in the bourse in Tehran.

Mohammad Kaffash Panjeshahi, managing director of Khobregan Saham Co. which was an active broker during the first phase, has said that this (oil bourse) is the best opportunity for both the public and private sectors to collaborate in light of the difficult economic situation and the irritant US re-sanctions.

Several attempts had been made in the past to sell crude oil on the stock market in Tehran and involve the private sector and international stakeholders in the heavily state-controlled oil sector -- the lifeblood of Iran’s economy.