Foreign companies are seeking to buy Iranian oil through the country’s energy exchange, an Iranian official says.
“Several countries through their embassies in Iran have sought information on how to buy our crude that’s been offered on the Energy Exchange,” Iran Energy Exchange (IRENEX) Managing Director, Seyed Ali Hosseini told the country’s official news agency IRNA.
“Several foreign companies have also held direct talks with [Iran’s Energy Exchange] and have been given transaction codes,” added the official.
He did not provide further details.
Iran First Vice President Eshaq Jahanguiri said on 01 July the government will sell part of its crude on the country’s national stock exchange. The move was aimed at offsetting the renewed unilateral US sanctions that have hit Iran’s oil, banking and other financial sectors.
The Administration of Donald Trump withdrew the US from the 2015 nuclear deal, also known as the JCPOA, and reimposed economic sanctions on Iran. Three European countries, Britain, Germany and France, also known as the E3, as well as Russia and China have still remained in the pact.
“There have been many proposals to buy Iran’s oil in the last several weeks which shows the parties’ interest,” added Hosseini. “There are no problems and restrictions in terms of the number of buyers but it’s important to address falling oil prices,” warned Iran Energy Exchange Managing Director.
Tehran offered 1 million barrels on its Energy Exchange (IRENEX) in the first round on 28 October but sold nearly 300,000 for the price of $74.85 per barrel. However, 700,000 barrels were sold at $64.97 the second time on November 11.
The country’s Oil Ministry has not announced when it will offer the third round of oil purchase on IRENEX. Oil prices have seen sharp fall even after the OPEC decided production cut to stop the decline. Brent oil futures, the international benchmark were trading around $53.60 per barrel on Monday, representing an almost 20 percent decline in 2018, CNBC reports.
The US sanctions have also cut Iran’s access to financial markets and have made it difficult for Tehran to receive the oil money. However, Hossein says “many customers have requested to pay in Iran’s national currency rial."