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Iran starts exporting gasoline to Venezuela

Oil&Gas Materials 19 May 2020 10:23 (UTC +04:00)
Iran starts exporting gasoline to Venezuela

TEHRAN, Iran, May 19

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Iran's gasoline export to Venezuela is just a deal between private sectors, Secretary of Iranian Oil, Gas and Petrochemical Products Exporters Union Hamid Hosseini told Trend.

"Iran used to import gasoline two years ago now, but now Persian Gulf Star Refinery created capacity for the country to export gasoline," he said. "Due to coronavirus spread and drop of fuel consumption inside the country and around the world, Iran had look for faraway markets."

"Previously, Iran used to export surplus gasoline to neighbor countries including Iraq, Afghanistan and the Emirates, but now, when most countries limited business activities, Iran's private sector seeks for new markets for exporting gasoline," Hosseini said.

"The export to Venezuela is only commercial deal; there is no involvement of the governments. The National Iranian Tanker Company has not taken any official position towards the issue so far," he said. "This is a transaction between Iran and Venezuela's private sector; meanwhile, as the US sanctions prevent countries to trade with Iran and Venezuela, these two countries have trade with each other. There is no third party involved."

"Although some media outlets want to present the issue differently, it's unlikely that the US interfere and prevent a $30 million trade," the secretary said. "The price of gasoline is $20 per barrel, so if Iran exports 2 million barrels, it would roughly value $30 million, and I don't think this figure would cause a new political crisis between Iran and the US. Any ocean liner has the capacity to carry 2 million barrels of crude oil/"

"The media claims of five Iranian tankers shipping fuel to Venezuela are just claims. It is possible that other tankers carry crude oil to other destinations or storing the crude oil until customers are found," he said. "These tankers do not necessarily carry gasoline to Venezuela; maybe some are carrying diesel."

Earlier, Iran's foreign minister Mohammad Javad Zarif has warned the United States against deploying its navy in the Caribbean to disrupt Iranian fuel shipments to Venezuela.

The US has imposed unilateral sanctions aimed at stopping exports by Iran and Venezuela, both being major oil crude producers.

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