Iran's public companies obligated to offer oil products at energy exchange
Tehran, Iran, Aug.17
Iran's public companies are obligated to offer crude oil and oil products at the energy exchange in order to follow the targets of the Sixth Development Plan (2016-2021), said the Managing Director of IRENEX.
"The energy exchange has high capacity to expand trades; therefore, it's better that crude oil and oil products are traded via energy exchange," said Seyed Ali Hosseini, Trend reports citing IRNA.
"The crude oil is regularly being offered at the energy exchange in the volume of two million barrels of oil, but the traded volume so far has been around 1.100 barrels," he said.
"The issue of prepayment in exchange has been resolved to some extent. If the National Iranian Oil Company [NIOC] accepts credit, it can be approved that the prepayment is not necessary," he added.
In his words, the increase of crude oil supply is possible, if there is a demand for it, and NIOC seeks to sell and supply according to the demand.
"The government is obligated to offer crude oil and oil product at the energy exchange according to the Sixth Development Plan," he added. "Thus, NIOC should supply two million barrels of light crude oil and two million barrels of gas condensates to the energy exchange per month according to the budget plan of current Iranian year [started March 21, 2019]."
Touching upon the role of the exchange in reducing the negative effect of the sanctions, he said: "The energy exchange can play a positive role in improving the current situation by the increase of foreign currency revenues and oil exports sale to neighbor countries."
He went on to say: "The marketing network of energy exchange can expand the competitive market and attract customers."
"Considering the current situation in oil sale, there are certain limitations, but the energy exchange could help to sell oil products via land transportation," he added.