IRENEX to hold offering of 2m barrels of light crude oil on Tuesday

June 30, 2019 - 22:19

TEHRAN- National Iranian Oil Company (NIOC) will offer two million barrels of light crude oil at the base price of $59.28 at the international ring of Iran Energy Exchange (IRENEX) on Tuesday, IRNA reported.

This will be the 12th round of light crude offering in IRENEX and the fifth round of offerings in the current Iranian calendar year (started on March 20, 2019).

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 the 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.

Following the Iranian Oil Minister Bijan Namdar Zanganeh’s directive, NIOC has been offering 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.

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.

NIOC also sold 70,000 barrels of heavy crude oil at IRENEX for the first time on April 30. In the first round one million barrels of heavy crude was offered at a base price of $60.68.

Offering heavy crude at IRENEX came after NIOC offered light crude at this stock market in eight rounds.

Successful sales of heavy crude at Iran’s stock market happened while the U.S. is tightening pressure on the country’s oil industry as the Trump administration has ended waivers on crude purchase granted to Iran's primary oil buyers in a bid to push Tehran oil sales to zero.


Leave a Comment

5 + 13 =