Value of IRENEX trades exceeds $7.8b since March

December 29, 2019 - 14:31

TEHRAN – The value of trades at Iran Energy Exchange (IRENEX) has reached 330 trillion rials (about $7.84 billion) since the beginning of the current Iranian calendar year (March 21), Mehr News Agency reported on Saturday, quoting the head of Iran's Securities and Exchange Organization (SEO).

“The figure has risen significantly compared to the previous year and the year before that, and this is an indication that the Energy Exchange is in the right path for growth,” Shapour Mohammadi said.

According to the official, the country's long-term economic policies should contribute to the boom in the energy stock market, as the stock market has sufficient transparency and it will offer equal opportunities for everyone since people enter the field competitively.

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.

According to NIOC’s representative in IRENEX Amir Hossein Tebyanian, IRENEX was initially founded in an attempt to permit the Iranian private sector to export crude oil since Washington aims to cut Iran's oil sales.

NIOC offered light 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.

Offering gas condensate at IRENEX came after the successful offering of crude oil at this market. The first offering was done on February 13, which failed to attract customers.

And then the turn came to heavy crude. Offering heavy crude at IRENEX came after NIOC offered light crude at this stock market in eight round. 

Recently, foreign buyers have also expressed willingness to engage in IRENEX oil offerings and welcoming the idea, NIOC is preparing necessary bases for them to be able to do so.

EF/MA

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