National Iranian Oil Company will offer today one million barrels of crude oil on the country’s internal energy exchange (IRENEX) on the fifth round of supply.
The sales will start at 14:30 hours local time (GMT +3.30). Each barrel has been priced at 56.81 dollars that shows a rise of 57 cents in comparison to the last round that took place on 3 February when National Iranian Oil Company (NIOC) issued for the first time a statement in English in a bid to woo potential foreign clients. The state company failed to sell any barrels.
On this round like previous occasions, clients can pay the amount in both foreign exchange, such as dollar or euro, as well as national Iranian currency rial. Also payment clearance period has also risen to 3 months from the original 2 months.
Third sales on IRENEX also failed in January.
Tehran sold 280,000 barrels of crude oil out of 1 million barrels on offer through the country's domestic bourse 28 October for the price of $74.85 per barrel. The second round sold 700,000 barrels at $64.97 on November 11.
Selling the country's vital crude on domestic stocks exchange is part of Iran's strategy to circumvent unilateral US sanctions that have targeted oil and banking sectors.
Iraq, India, China, South Korea and Japan as well as three other countries have been given US sanctions waivers to keep buying Iran oil. They have been importing the crude in lower quantities. Recently, Japan and South Korea resumed Iran oil purchase. Only Italy and Greece haven’t made any purchases despite waivers.
The Iranian parliament obliged NIOC on Monday to sell four million barrels of heavy and light crude oil as well as two million barrels of gas condensates on IRENEX international ring a monthly basis starting from the next Iranian fiscal calendar that starts on 21 March.
The measure was approved by lawmakers who are debating details of next fiscal year’s budget.
Last Tuesday, NIOC offered a million barrels of gas condensate on the energy stock exchange’s international ring. It’s not known if the sales was successful.