Exports of oil products to Iraq continues despite unrest: OPEX

November 1, 2019

TEHRAN – Spokesman of Iranian Oil, Gas and Petrochemical Products Exporters' Union (OPEX) said the country continues exporting oil products to Iraq despite the unrest in the Arab country, IRNA reported.

According to Hamid Hosseini, the Iraqi Kurdistan Region is the main destination for most of Iran's oil products exports like gasoline and gas oil.

“Currently, we are only exporting the cargoes which were purchased in the previous offerings of such products at Iran Energy Exchange (IRENEX),” the official said.

National Iranian Oil Company (NIOC) sold 450,000 tons of oil products worth $160.656 million at the international ring of Iran Energy Exchange (IRENEX) during the week ended on September 20.

In the mentioned week, 168,000 tons of gasoline worth $64.297 million as well as 162,500 tons of gasoil worth $73.964 million along with 20,000 tons of kerosene and 50,000 tons of liquefied petroleum gas were sold to foreign buyers mostly from Iraq and Afghanistan.

Since the U.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 lessen it's economy’s reliance on oil.

In the past few years, Iranian think-tanks and energy experts have been repeatedly stating that the country should increase its refining capacity in order to make up for the reduces in the crude oil sales by exporting oil products.

Since the first offering of oil products at IRENEX, foreign buyers, mainly from neighboring countries, expressed willingness for purchasing the products offered at this exchange market.

In this regard some foreign companies and businessmen from Iraq have been assigned the Iranian Commercial Code and, some have also referred to the National Iranian Oil Company (NIOC) for participation in these transactions.

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