28 Mar 2024
Saturday 10 November 2018 - 12:21
Story Code : 326095

Iran selling oil on stock exchange - Energy expert



Sputnik - On the eve of the new US sanctions Iran launched the sale of oil supply futures and on the first day managed to sell 280 thousand barrels of crude. This is while the country has announced its readiness to supply one million barrels of crude oil to buyers.




In these transactions, the price per barrel was $74.85, 20% ofthese were paid withIranian rials and the rest withforeign currencies; there's no indication ofthe exact day when the deliveries start. In the context ofUS sanctions, the system ofsales inthe stock market has its advantages. One ofthem is that buyers can buy the crude throughintermediaries and not directly fromthe Iranian National Oil Company.

London oil and gas expert Manouchehr Takin told Sputnik ofsome ofthe difficulties awaiting buyers ofIranian crude inthe stock market beforesanctions are applied.

The first ofthese is the fact that all cargoes and ships inthe Persian Gulf are tracked, and therefore can be sanctioned.
"When the private sector buys oil, it goes tothe Persian Gulf and the terminal ofKhark Island. As fortransporting, it is controlled bysatellites, so that ships can't be lost and can be found inthe case ofan incident. The tankers also have these devices showing their position installed. We can say that the United States doesn't want Iranian oil tobe exported and so it tracks the destinations ofships loaded inKhark. So the question is how can the private sector sell that oil?"


"In case a tanker arrives inIndia, Malaysia or another country tounload oil, the US will pressure these countries so that they don't buy it underthe threat ofsanctions," the expert explained.

According toTakin, China is one ofthe importers ofIranian crude and is not afraid ofUS sanctions or threats. But the problem is that there is a danger that US sanctions will apply not only tothe Iranian National Oil Company or any other company, butalso toIran's oil buyers.

The economist said that another problem related toIranian oil inthe stock market is payments inthe context ofUS sanctions onIran's banking sector.
"About four or five years ago, Iranian oil was subject toUS sanctions and, asa result, India's oil debt toIran amounted tofive or six billion dollars. But the Asian country couldn't return the money because ofthe sanctions and the money settled inthe Indian banks inthe national currency. On that occasion, Iran was forced tobuy Indian goods tocollect the debt. Therefore, the question that can now be asked is how the buyers ofthe 280,000 barrels ofoil will be able toexport it and how they will pay forit," the expert concluded.



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