How much oil can Iran sell this year?

Oil&Gas Materials 20 January 2019 11:50 (UTC +04:00)

Tehran, Iran,Jan.20


The private sector has become more active in oil offering process at Iran Energy Exchange, while the neighboring countries have also shown interest in the oil sale at the Exchange, Member of Iranian Parliament's Energy Commission Ali Golmoradi said in an interview with Trend.

Referring to the price of crude oil barrels at the Energy Exchange, he said that the oil price would be decided taking into account the reality. "If Iran wants to ensure uninterrupted oil exports, there should be a base price that is defined in the budget."

However, referring to return of foreign currency revenues to the country, he said that due to issue of foreign currency return, the oil price at Energy Exchange can not be more than the price in the global market.

The official noted the third phase of oil offering at the energy exchange would be in rial. "The exchange rate of USD to rial for oil sale at the Energy Exchange will be the official rate of 42,000 rial for one dollar."

He pointed out that the foreign countries request to buy Iran oil at the Energy Exchange. "There should be no limitation for customers at the Energy Exchange.I doubt the buyers of Iranian oil would face problem at the Energy Exchange"

Referring to the US sanctions against Iranian shipping and insurance of oil tankers he said that It is not an easy task to overcome these problems, but its unlikely that the oil distribution faces challenges, since the unofficial mechanism in the private sector is stronger than public sector and they can bypass the sanctions.

He went on to add that Iran expects to sell 1 million barrels of crude oil per day in the next Iranian year (March 21,2019) budget. "Currently, the average production and sale is between 1.5 and 1.8 million barrels per day. Considering the fluctuation of Iran oil sale, the volume would be less than this, perhaps Iran would sell 500,000 barrel less than these figures."