Former official dismisses speculations about discount in Iranian crude sales

TEHRAN (FNA)- Iran’s former Governor at the Organization of Petroleum Exporting Countries (OPEC) Javad Yarjani rejected media claims that Iran is offering discounts for selling its crude.

“Fortunately, Iran’s oil marketers enjoy high capabilities and can sell the Iranian oil without giving any discount,” Yarjani told FNA on Saturday.

Noting that the West-imposed sanctions have increased oil prices in the global market, he said after the imposition of embargos, certain states tried to bested Iran and grab the country’s customers by increasing their production, but in vain.

“It is a reality that they have never been successful in taking Iran’s place in the international oil markets,” Yarjani underlined.

In relevant remarks late October, a senior official of the National Iranian Oil Company (NIOC) rejected the reports by the foreign media alleging that it has offered discount to its buyers.

“Basically, Iran is not required to offer any price reduction for selling crude oil because our oil buyers are currently making their purchases based on international regulations and without any problem,” National Iranian Oil Company’s Director for International Affairs Mohsen Qamsari said.

“Iran’s crude oil price is such that it can engage in trade rivalry with oil producers,” he said.

Qamari echoed Oil Minister Bijan Namdar Zanganeh’s earlier remarks that oil prices will serve as an instrumental factor for Iran to regain its status in the oil markets.

“If you look at the world crude oil market now you will see that the supply and demand are not in good conditions due to global recession. I think that oil prices must decline, but due to the influence of speculators in the market and stock markets the prices do not drop,” the official said.

He added that another reason for the high prices despite sufficient supply is high production costs in some oil fields.

“Naturally, a resupply of Iran’s crude oil on the world markets will result in oil price cuts. The current figures show that the demand for oil is 30 percent lower than in normal state,” said Qamsari.

“All oil vendors favor oil price hikes, but if we take a realistic and long-term look at this issue we will see that high crude prices will not benefit the producers,” he added.

Qamsari said earlier that Iran is currently looking for new options to find more customers for its crude oil exports.

“Refining and oil companies in the world are willing to resume cooperation with us in technical and investment sectors due to the structure of Iran’s petroleum industry, but this issue does not necessarily mean that if Total or Shell are operating in Iran they must purchase Iran’s oil,” he said.

“Despite the international sanctions (imposed on the country) over the past years, Iran has managed to preserve the traditional buyers of its oil,” he added.

Iran and European countries are currently ready to resume their oil cooperation, the official said, adding: “However, it must be noted that gaining back the market is not a simple task, but due to the existence of tools, we have the possibility to do so.”

“Given the new circumstances, a large number of traditional buyers of Iranian crude oil are making the preparations and providing the facilities for raising their crude oil purchase from Iran,” Qamsari said.

Qamsari said crude oils with API gravities varying between 20 and 40 are currently produced and consumed in the world.

By Fars News Agency


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