Logo of Phnom Penh Post newspaper Phnom Penh Post - Iran sells oil on exchange in bid to counter sanctions

Iran sells oil on exchange in bid to counter sanctions

Content image - Phnom Penh Post
Iranian vice-president Eshaq Jahangiri gives an interview in Tehran last year. In July, he came up with a plan to sell oil to private companies on the energy exchange. ATTA KENARE/AFP

Iran sells oil on exchange in bid to counter sanctions

Iran sold oil to private buyers through its energy exchange for the first time on Sunday, as part of its efforts to counter the imminent return of US sanctions.

Only 280,000 barrels were sold out of one million offered, and went for $74.85 per barrel, more than $4 below the initial asking price.

The identity of the buyer remained a secret, with the conservative Fars news agency saying only that a conglomerate of private firms had made the purchase through three brokerages.

The US is set to reimpose sanctions on Iran’s oil industry on November 5, following President Donald Trump’s decision to walk out of the 2015 nuclear deal in May.

The plan to sell oil to private companies on the energy exchange was floated back in July by first vice-president Eshaq Jahangiri with the aim of “defeating America’s efforts to stop Iran’s oil exports.”

The government hopes selling to private buyers, rather than direct to foreign clients, will make it harder for the US to monitor and stop its sales.

“With the imminent return of a new wave of sanctions, the government is determined to utilise the manoeuvring ability of the private sector to sell Iran’s oil and find new markets,” Hamidreza Salehi, director of Iran’s energy exports federation, told semi-official news agency ILNA.

Some estimates show Iran’s crude exports have already dropped by a third since May when it was selling around 2.5 million barrels per day.

The government currently intends to offer oil on the energy exchange once a week, according to Fars.

Its initial base price on Sunday was $79.16, but it received limited bids as much as $16 lower as trading began, the exchange’s website showed.

The final buyer only emerged after the base price was dropped to $74.85 in the closing hours.

The head of Iran’s securities and exchange organisation, Shapour Mohammadi, promised on Friday that the identity of the buyer would not be revealed.

MOST VIEWED

  • Hun Sen: Full country reopening to be decided in two weeks

    Prime Minister Hun Sen has announced that if the Covid-19 situation remains stable for 15 consecutive days from the end of the October 5-7 Pchum Ben public holiday, Cambodia will reopen fully, albeit in the context of Covid-19 whereby people have to adjust their lives to

  • Cambodia sets new Covid-19 quarantine rules

    The government has modified Covid-19 quarantine requirements, shortening the duration for, among others, Cambodian officials, foreign diplomats and delegations, investors and inbound travellers in general. According to an official notice signed by Minister of Health Mam Bun Heng late on October 16, quarantine length for Cambodian

  • Will Evergrande change the way Chinese developers do business in Cambodia?

    China’s property sector policy has exposed the grim financial condition of real estate developers including those operating in Cambodia, which raises questions over the viability of their projects and business going forward The dark blue netting draping over one of Yuetai Group Co Ltd’

  • Phnom Penh governor: Show Covid-19 vaccination cards, or else

    Phnom Penh municipal governor Khuong Sreng late on October 5 issued a directive requiring all people aged 18 and over and the parents of children aged 6-17 to produce Covid-19 vaccination cards when entering schools, markets, malls, marts, eateries and other business establishments that have been permitted

  • Cambodia seeks probe into 'false reports' on Hun Sen's alleged Cypriot passport

    Minister of Justice Koeut Rith on September 6 wrote a letter to his Cypriot counterpart Stephie Dracos requesting cooperation in investigating and providing the truth in relation to the "exaggerative and false allegations" that Prime Minister Hun Sen holds a Cypriot passport. In his letter, the

  • Cambodia voted ‘world’s friendliest country’ in Rough Guides reader poll

    Cambodia ranked number one among the “World’s Friendliest Countries”, according to a reader poll conducted by London-based international website “Rough Guides”. Taking submissions through Twitter and Facebook, “Rough Guides”, a well-known travel agency and publisher of guidebooks, said the Kingdom “was by far the