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National Iranian Oil Company: Price of Iranian crude oil has nothing to do with WTI

Oil&Gas Materials 22 April 2020 11:21 (UTC +04:00)
National Iranian Oil Company: Price of Iranian crude oil has nothing to do with WTI

BAKU, Azerbaijan, April 22

By Elnur Baghishov - Trend

Iran does not sell its crude oil based on the WTI (West Texas Intermediate) crude oil index, on any market, Director of the International Affairs Department at National Iranian Oil Company Saeed Khoshru said, Trend reports citing Shana news agency.

According to Khoshru, Iranian crude oil price is calculated based on Ice Bwave (Brent Weighted Average) and Dubai and Oman crude oil price index.

The director added that the main market for Iranian oil is East Asia. On April 20, the price was set at more than $20 per barrel, and on April 21 it exceeded $17.

"As for delivery in June, Iranian crude oil price was set above $25 per barrel on the basis of Ice Bwave in the European market," he said.

Recently, the price of crude oil on the world market has fallen sharply. As a result of this reduction, concerns about crude oil have increased in Iran.

West Texas Intermediate oil futures expiring in May traded as low as negative $16.74 a barrel on Tuesday, up from Monday's close of negative $37.63.

That selling pressure seeped into WTI crude contracts for June, which fell as much as 42 percent to $11.89 a barrel. Brent crude slid 29 percent to $18.10 at intrasession lows.

Crude oil for May delivery remained in negative territory on Tuesday, a day after hitting its lowest-ever level. The contract traded positive at one point before heading lower again.

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