Iran decreases oil price for October to secure market share
Baku, Azerbaijan, Sept. 14
By Fatih Karimov - Trend: Iran has lowered prices on oil shipments to Asia in October to secure its market share.
The Director of International Affairs of Iran's Oil Ministry Mohsen Qamsari said that the market situation defines prices. "Once Saudi Arabia embarks on lowering its oil prices, Iran should also lower its oil prices. Otherwise Ian will lose its share of the market."
"Currently, competition in the Asian market is tough. Even the US, Venezuela, and Russia are present in the Asian market. So, competition is high and it will be logical for producers to decrease prices in order to secure their market shares."
The National Iranian Oil Co. (NIOC) has set price for Iranian Light oil at a premium of 25 cents a barrel, which is 15 cents more than the Saudi Arab Light. This benchmark is to be the lowest price since December 2012.
Besides that, the Saudi Arabian Oil Co. (Aramco) reduced official premium for Arab Light oil 1 cent a barrel for the Asian market, while regional consumers of Medium oil will get $1.3 discount per barrel.