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Iran’s ex-official reveals benefits of selling oil on Energy Exchange

Oil&Gas Materials 14 November 2018 16:14 (UTC +04:00)

Tehran, Iran, Nov.14

Trend :

Having an oil exchange is better than not having one, former deputy director of Iran’s Securities and Exchange Organization (SEO) Ismaeil Qolami said in an interview with Trend, commenting on Iran offering its oil on local Energy Exchange.

According to Qolami, oil pricing should be set in accordance with the supply/demand synergy, and no obstruction is allowed in this process.

He went on to add that the Administration of Iran's ex-president Mahmoud Ahmadinejad was supposed to launch the oil exchange at Kish Island – a plan that didn't work out.

The former deputy head of SEO also shed light on how the US sanctions and Iran’s resistance policies led to the decision for oil to enter the Energy Exchange. Nevertheless, he noted that a lack of commitment may cause the plan to fall through and it should be taken totally seriously.

He further expressed hope that this trend would extend up to post-sanction times, believing it to be dependent on a supply/demand correlation.

Qolami highlighted the perks of an oil exchange, saying that lack of supply in the given field used to pave the way for circumventing sanctions, and profiteering individuals with histories of business misconduct could easily take advantage of the situation; however, presently the private sector is given a chance to purchase oil and sell it to other countries such as Pakistan, and Afghanistan.

Therefore, the plan to offer oil on local exchange, despite being flawed, is better than no plan at all, he said.

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