Iran says it does not sell crude oil at discount prices
Baku, Azerbaijan, Dec. 26
By Fatih Karimov - Trend:
Iran does not sell crude oil at discount prices, Mohsen Qamsari, Director of the International Affairs Department at National Iranian Oil Company, said.
Qamsari said due to the market situation, Iran's heavy crude oil price has dropped, and this is not related to rivalry among OPEC members, Iran's Shana news agency reported on Dec. 26.
Proportional to the overall drop of oil prices in the international market, Iran has lowered heavy crude oil price, he said, adding that "this does not mean that Iran sells oil at discount prices."
The economic situation, the supply and demand situation, and the prices of oil products, are the main reasons of the recent drop in oil prices, he said.
Oil prices have collapsed since OPEC decided on Nov. 27 to maintain its output target, fanning speculation that Saudi Arabia and other members are determined to make North American shale drillers and other producers share the burden of reducing oversupply, Bloomberg reported.
Saudi Arabia's state oil company prompted speculation that the kingdom was seeking to preserve market share when it lowered prices for November.
Iran deepened the discount for Iran Heavy crude to $3.51 a barrel for January sales to buyers in Asia, compared with a $1.66 discount for December. That cut puts Iran's heavy crude at the deepest discount December 2008.