No Buyers for Oil Offer via IRENEX

EghtesadOnline: National Iranian Oil Company found no buyers at its 10th round of crude oil offer on the Iran Energy Exchange, despite the Oil Ministry's efforts to improve the purchasing terms, IRENEX data shows.

News ID: ۷۴۷۳۹۹

22 May 2019

NIOC offered two million barrels of light crude oil at a base price of $67.28 per barrel on Tuesday.

To facilitate sales on the IRENEX, the ministry last week reduced the minimum purchase order from the previous 35,000 barrels to 1,000 barrels for land delivery.

The base price of a barrel of crude is in line with the average Brent quotations during 10 international business days before the date of the offer, according to Financial Tribune.

Offering crude oil on the stock market is part of government efforts to involve the private sector and international companies in the oil industry, which has long been under government control.

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

The NIOC so far has sold 1.1 million barrels of crude via IRENEX.

According to the NIOC website, at the next oil sale on Monday, 2 million barrels of Iran Heavy crude will be on offer at a base price of $64.29 a barrel.