6 Million Barrels of Oil. Condensates Ready for Trade at Iran`s Bourse

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The National Iranian Oil Company (NIOC) is preparing for three big trades involving six million barrels of oil and condensates in a local bourse next week.

A Wednesday statement on the NIOC website said that the trades at Exchange (IRENEX)`&gt.Iran Energy Exchange (IRENEX) are planned for three consecutive days beginning on Monday.

It said two million barrels of condensates. an extremely light form of oil and normally a byproduct of natural gas production. will be traded at Exchange (IRENEX)`&gt.IRENEX on Monday at an initial price of $57.87 per barrel.

On Tuesday. the NIOC said. two million barrels of light crude will be traded at an initial price of $56.72 per barrel while a 2-million-barrel cargo of heavy crude will be traded on Wednesday at an initial price of $52.77 per barrel.  

All the trades will take place at the export ring of Exchange (IRENEX)`&gt.IRENEX. a local mechanism for energy trade which has been used since mid-summer for selling Iran’s oil and petrochemical products.

If sold at the declared prices. the three cargo of oil could generate around $350 million in income for the NIOC. a company which has seen its normal and direct sale of crude to foreign customers reduced as a result of sanctions imposed by the United States.

The Exchange (IRENEX)`&gt.IRENEX said earlier this week that the National Iranian Oil Refining and Distribution Company (NIORDC) had sold off 115 million liters of liquefied petroleum gas (LPG) in a single day of trade in the exchange. generating more than $23 million in income.

The successful sell-off by the NIORDC may have encouraged the NIOC to accelerate its plans for trade of oil cargoes at Exchange (IRENEX)`&gt.IRENEX.

The Wednesday statement on the NIOC website said that the planned sale of oil through the local bourse is in line with the company`s obligations under a national budget law while insisting the trade could diversify the sale methods at the time Iran is practicing “the economy of resistance“.