IRENEX to hold 16th round of offering light crude oil on Tuesday

National Iranian Oil Company (NIOC) will offer two million barrels of light crude oil at the international ring of Iran Energy Exchange (IRENEX) on Tuesday, Shana reported.

The base price for this round of offering, which is the 16th round since beginning of offering light oil at IRENEX, and the ninth round in the current Iranian calendar year (started on March 21, 2019), is $61.01 per barrel.

Buyers can receive their cargo up to three months after the transaction, and the delivery of the cargo in other regions is subject to NIOC approval.

According to Iran’s current year budget law, NIOC is obliged to offer two million barrels of heavy crude oil, two million barrels of light crude and two million barrels of gas condensate every month.

In this regard, the company has been offering various grades of crude oil almost every week since the beginning of the current Iranian calendar year.

Light crude oil was offered 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’s representative in IRENEX has said that the company will continue offering oil at IRENEX, Mehr news agency reported.

“Offering oil and gas condensate in the international ring of IRENEX has become a legal obligation, and it will definitely be a lasting move,” Amir Hossein Tebyanian said in a press conference hosted by Mehr news agency at the place of the agency in early July.

According to the official, IRENEX was initially founded in an attempt to permit the Iranian private sector export crude oil since Washington aims to cut Iran's oil sales.

However now, 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.

source: Tehran Times