IRENEX to hold 1st crude oil offering in new Iranian year on April 9

March 30, 2019

TEHRAN- National Iranian Oil Company (NIOC) will offer one billion barrels of crude oil at the base price of $63.36 at Iran Energy Exchange (IRENEX) for the eighth time on April 9, Mehr news agency reported.

As reported, like the previous rounds, the least amount of sales will be 35,000 barrels in this round of offering which is the first round in the new Iranian calendar year (strated on March 21).

NIOC offered crude oil at IRENEX first on October 28, 2018 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.

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

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.

Since the U.S.’s withdrew from Iran’s nuclear pact in May 2018, vowing to drive Iran's oil exports down to zero, the Islamic Republic has been taking various measures to counter U.S. actions and to keep its oil exports levels as high as possible.

One of the main strategies that Iran chose to execute to help its oil exports afloat has been trying new ways to diversify the mechanism of oil sales, one of which is offering oil at the country’s stock market.

Iranian Oil Minister Bijan Namdar Zanganeh has said that NIOC will offer crude oil at IRENEX every week.

The minister said that it may take some time for selling crude oil at IRENEX to be common and regular, but the oil ministry will offer the product at this market every week.

MA/MA

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