Iran’s Energy Exchange is far from int’l standards

Oil&Gas Materials 3 November 2018 21:43 (UTC +04:00)

Tehran, Iran, Nov.3


What happened on the Iranian stock exchange is a bid and given Iran's infrastructure, one should not expect it to be compatable with global standards, an Iranian economic expert told Trend.

Referring to the offering of Iranian oil via Energy Exchange, Morteza Behrouzi Far said that what has happened was auctions. “In many international exchanges, stock transactions do not actually lead to physical purchases because neither the buyer nor the seller need it and only seek profit by predicting prices and fluctuations.”

It should not be forgotten that Iran's oil production is sanctioned, said Firoozierr, referring to the presence of foreign companies in the Iranian oil bourse.

“Therefore, the notion that the establishment of the oil exchange would prevent sanctions is unacceptable.”

Hence, the presence of European companies is difficult, noted the expert. Of course, for American companies, it should be noted that the entry of Iranian oil into the United States for nearly 38 years is prohibited, he said.

“Reducing Iran's oil exports to zero is impossible,” he said. “But the loss of almost 50 percent of exports will also affect the country.”

“Someone claims that the decrees in oil export will be compensated by rising prices, while this increase can be more beneficial to our competitors and our enemies whose production is steady and will help them to implement their regional policies.”

Iran has started direct sales of oil to domestic and international buyers through its energy bourse on October 28 as a tactic to circumvent the US sanctions.