TEHRAN - The National Iranian Oil Company (NIOC) has reportedly raised the official selling price (SOP) for all its crude grades bound for Asia, the Mediterranean and Europe in an indication of Iran’s return to the market and rising demand for its oil.
According to enemy and commodities information provider S&P Global Commodity Insights, the May SOP for all Asia-bound crude grades has been hiked by $4.30-$4.50 per barrel from April.
It raised the Iranian Light OSP by $4.50 per barrel to a premium of $9.20 to the average of Oman/Dubai assessments, while Iranian Heavy and Forozan have each been raised by $4.30 per barrel to premiums of $7.95 and $8.05, respectively. Price for Soroosh grade has been hiked by $4.40 per barrel to a premium of $4.30 to Oman/Dubai, it said Wednesday, adding the differentials were the highest ever recorded.
For grades bound for the Mediterranean and Northwest Europe, NIOC increased the OSPs by $1.35-$2.95 per barrel.
According to the report, Iranian Light bound for the Mediterranean and Northwest Europe were also offered by a raise of $2.95 per barrel from April to $3.15 and $2.90 per barrel against ICE Brent, respectively.
Energy markets are impatiently awaiting the return of Iran’s barrels amid red-hot oil prices.
Officials have said the country is teaming up with new customers to export its oil in defiance of the most draconian sanctions imposed by the United States.
Minister of Petroleum Javad Owji said this month that Iran’s oil production has reached pre-sanction levels.
Iran, he said, is finding new customers and markets, using different methods in oil contracts, and making use of highly-qualified experts in the field which have helped it ramp up sales.
“The current oil production capacity has reached the pre-sanctions era, meaning the daily figure of over 3.8 million barrels,” he said.
Iran Ferries $22bn Worth of Oil to China
Iran’s fleet has exported at least $22 billion worth of oil to China since 2021.
In the first three months of 2022 alone, Iran shipped an average of 829,260 barrels of oil per day to China, Washington Free Beacon reported.
A total of 337,882,520 barrels of oil, valued at $22 billion, have made their way to Beijing since President Joe Biden took office.
When the 13th government under President Raisi assumed power and despite the lack of change in the conditions of sanctions imposed against Iran, oil exports have increased by more than 40%.
The increase in oil exports has led to an increase in oil revenues. As Owji has stated, oil export growth led the Ministry of Oil to inject more financial resources into the government’s budget.