35,000 barrels of crude oil sold at IRENEX in fifth offering

February 19, 2019

TEHRAN- National Iranian Oil Company (NIOC) sold 35,000 barrels of light crude oil at Iran Energy Exchange (IRENEX) at the base price of $52.25 per barrel for the fifth time on Monday, IRIB reported.

It is while NIOC had previously announced that it would offer one million barrels of light crude oil at IRENEX at the base price of $56.81 per barrel and the least amount of sale would be 35,000 barrels like the previous round of offering.

As previously announced prepayment of six percent and possibility of total payment in rials would be some advantages of the fifth round; moreover, the payment deadline would be 90 days as of the shipment date.

The experts believe that the remained offered barrels were not sold at this round because this process (offering crude oil at stock market) is new and it takes some time for the applicants adapting to the new condition.

The fourth round of offering took place on February 4, when one million barrels of light crude oil was offered at the base price of $56.24 per barrel and the least amount of sale was 35,000 barrels. This round ended with no deals.

IRENEX Managing Director Ali Hosseini told Fars News Agency that "because of discrepancy" between buyers’ demands and conditions put up by the NIOC the oil offering did not produce the desired results.

NIOC offered one million barrels of light crude oil at IRENEX for the third time on January 21. The set price for that round of oil sale was $52.42 per barrel.

The third round witnessed some advantages compared to the first and second rounds to facilitate purchase process for the applicants.

The second round was on November 11 for offering 700,000 barrels of light crude oil at the price of $76.29 per barrel.

The first round of offering occurred on October 28, just few days before new U.S. sanctions on Iran’s petroleum sector took effect (November 4). In the first round, NIOC could sell some 280,000 barrels of crude oil at $74.85 per barrel. With the daily supply amount of one million barrels, the market wrapped up by selling eight 35,000-barrel-cargos of oil on the day.

MA/MA

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