IRENEX to gain, but not overnight: Zanganeh
Offering crude at Iran Energy Exchange (IRENEX) will finally pay off, but the bid requires time, said Iran’s oil minister. Bijan Namdar Zanganeh told ICANA on Saturday that Oil Ministry continues to offer crude at IRENEX every week to get the desired results.
In implementing the policies of resistance economy, the National Iranian Oil Company has started offering gas condensate and light crude oil at IRENEX on a weekly basis.
Five rounds of crude sale have so far been taken place at the energy exchange.
NIOC sold 280,000 barrels, divided in 35,000-barrel consignments, at $74.85 per barrel during the first round.
The second round looked more promising as the company sold 700,000 barrels at $64.97/b. But the third round (January 21) and the fourth round (February 4) ended without any trade, although these two rounds underwent some procedural changes to meet the purchasing conditions of buyers.
The ¿fth round was held on February 18, when only a 35,000-barrel consignment of light crude was sold at $52.25.
To put up with US pressures on Iran’s oil sale, the market initially needs time to get experienced in attracting both domestic and foreign customers by improving business environment and getting as transparent as possible. It is essential for the market to remain free of corruption and rent-seeking. Zanganeh said several open and undisclosed talks have been held with crude customers to overcome the hurdles created by the US sanctions on the Islamic Republic’s energy sector.