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Iran could resume selling crude oil to domestic and international buyers through the commodity market. said The Chief Executive of Iran Energy Exchange (IRENEX). Seyyed Ali Hosseini.
He said that we are ready to start selling crude at the energy exchange. Oil trade can begin within three days if the Oil Ministry gives the go-ahead.
IRENEX has the necessary infrastructure to handle crude oil transactions. he said.
For us. there is no difference in trading mazut. condensates or oil. The first two are already on offer and crude oil can be traded as well. said the official.
According to Hosseini. 35.000 tons of mazut and 1 million barrels of gas condensates are traded at IRENEX every two weeks.
The ground is ready for foreign customers` transactions. More than 140 companies listed overseas are operating at IRENEX. Hosseini said without elaboration.
IRENEX is a market for trading energy futures and commodities. including oil. gas. electricity. petrochemicals and oil byproducts. It was launched in 2013 as the fourth official Iranian exchange and operates under the supervision and regulations of the Securities and Exchange Organization of Iran.
More than 100 companies. including petrochemical plants. refineries and power plants. offer their commodities at the exchange. according to the IRENEX website.
The Oil Ministry tested the waters for selling crude in the commodity market in 2014. offering 100.000 barrels of oil per day at IRENEX. but the move got lukewarm response from buyers. primarily because the crude oil was not priced competitively.
The oil offered at the time was reportedly meant for consumption at home. but plans call for a mechanism that would allow future oil purchases via IRINEX to be made available directly from the southern terminals for export. It is also said that transactions can be carried out via both rial and the dollar. offering more flexibility in trade.
