SHANA – The managing director of Iran Energy Exchange (IRENEX) said the Iranian Ministry of Petroleum was serious in ensuring success of IRENEX by offering a million barrels of light crude oil on the floor of the exchange.
The National Iranian Oil Company (NIOC) will start selling crude oil at IRENEX by weekend (October 28). Observers have cast differing views about the company’s long-sought move.
Washington plans to pursue a new series of sanctions due to go into effect Nov. 4 aimed at undermining Iran’s economy.
Offering crude oil would start at the weekend on a large scale on IRENEX with one million barrels of light crude oil to be offered on the day. The minimum volume of purchase will be 35,000 barrels.
Shana has held an interview with Mr. Ali Hossein, the managing director of IRENEX, about the issue.
The official said, “Basically, after a commodity is accepted on the stock exchange, the supplier of that commodity must declare the terms for sale in a form called the supply announcement. With this announcement on October 15, the National Iranian Oil Company (NIOC) launched the process on the Energy Exchange, and the exchange informed all the activists, brokers and buyers through its official website. The release date will be Sunday, October 28.”
He emphasizes that the stock exchange is a potential for selling crude oil, adding this potential must be tapped to benefit from the daily supply of petroleum products in the domestic and international floors of the stock exchange.
“I hope that the supply of crude oil in the international floor of the energy exchange will be successful,” he said.
Mr. Hosseini underlined the strong determination of the Petroleum Ministry and the Iranian National Iranian Oil Company to supply crude oil on the Energy Exchange, saying that the pricing, delivery and settlement of oil consignments would play an important role in motivating buyers of crude oil.
Asked whether the domestic private buyers enjoyed the means to purchase crude oil on the energy exchange, the IRENEX managing director said: “Risks are usually shared in large deals. Well, buyers will try to tap the facilities of financial institutions as well as domestic and foreign banks and prepare for buying oil.”
He stated that crude oil would be sold to legal entities rather than persons in the Energy Exchange, adding, “Some domestic companies have a high ability and will definitely try to use financial and credit services (of domestic and foreign institutes) to buy crude oil.”
Mr. Hosseini further expressed optimism that NIOC’s crude oil offering in the energy exchange would continue given the determination of NIOC CEO Ali Kardor and the Iranian Minister of Petroleum Bijan Zangeneh.