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Iran denies offering big discounts on crude sales

Oil&Gas Materials 15 February 2016 17:52 (UTC +04:00)

Tehran, Iran, February 15

By Mehdi Sepahvand - Trend:

A source inside the Iranian Oil Ministry has denied allegations that it offers big discounts on crude sales in its new contracts.

"Iran's oil price in the new contracts is the official price and the claims related to discounts are not true," Mohsen Qamsari, director of international affairs at the National Iranian Oil Company said, IRNA news agency reported February 15.

In recent days, news outlets said Iran is offering huge discounts to the customers of its crude oil in the newly made contracts. Some of the reports claimed the discounts were bigger than those offered by Saudi Arabia.

Saudi Arabia last week offered a discount of $1.40 per barrel to its customers for oil to be delivered to Asia in March. This is while a Bloomberg article said NIOC will offer supplies at $2.60 a barrel below the average of Oman and Dubai grades for March, according to a company official who asked not to be identified because of internal policy.

Iran has been long saying it intends to regain its share of the oil market after freed from sanctions. Before sanctions, Iran used to export over two million bbl/d of crude. The sanctions brought the number down to one million in 2012.

Since the sanctions were lifted in mid-January, Iran has boosted its crude output by 400,000 thousand barrels a day and says it plans to add 200,000 a day more in near future.

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