"Discounting is just the nature of global markets and all crude producers do it to boost exports," the source was quoted as saying by IRNA.
"Accordingly, exporters determine price cuts based on several factors, including the supply and demand and rival producers' activities."
Noting that the price cuts are often applied to single shipments, the source added, "Long-term sales are conducted under contractual terms."
According to Financial Tribune, reports circulated last week that Iran has cut the official selling price for all its crude oil grades loading in September from Kharg Island and bound for Asia.
The September OSP differential for Iranian Light crude was cut by 80 cents/b from August to a premium of $1.20/b to the average of Platts Oman/Dubai crude assessments in September, S&P Global Platts reported.
The September Iranian Heavy crude OSP differential was cut by 60 cents/b from August to a discount of 90 cents/b to Platts Oman/Dubai, while the Forouzan crude OSP differential was cut by 75 cents/b on the month to a discount of 75 cents/b to Platts Oman/Dubai. The Soroush OSP differential was lowered by 80 cents/b to a discount of $5.55/b to Oman/Dubai for September, the source said. Iran intends to maintain its market share amid US sanctions slated to take effect on Nov. 4.
Iran's output averaged 3.81 million barrels per day last year, including 3.82 million bpd in Q4, 3.83 million bpd in Q3 and 3.79 million barrels in Q2, while it was marked by a downtrend in the past few months. The country saw its production fall to 3.72 million bpd in July—lowest since January 2017. The country needs foreign demand to again augment its crude production.