Economy, Business And Markets

Oil Debut at Energy Exchange

Oil Debut at Energy Exchange
Oil Debut at Energy Exchange

Crude oil will soon be offered at Iran’s Energy Exchange, as the Oil Ministry plans to fund itself, an official said.

“The Energy Exchange is preparing the ground for the launch of oil trading, as the oil ministry has planned to offer 100,000 barrels of crude oil per day through the export floor at the Energy Exchange,” Ali Hosseini head of the Energy Exchange told SENA.

Oil Minister Bijan Namdar Zanganeh, in a working meeting with members of the Chamber of Commerce, announced that his ministry has planned to obtain funds through selling crude oil via the Energy Exchange, SENA reported.

“The initial public offering at the Energy Exchange would be 100,000 barrels a day a, based on the governmental exchange rate, but in rials, which will be launched till October 22,” Zanganeh stated.

The Energy Exchange is waiting to be precisely briefed about the whole procedure, which is supposed to be announced by the oil ministry, Hosseini said.

Hosseini added that oil has been already accepted to be traded by the Energy Exchange and given the mechanism of the oil sales; the Energy Exchange will be upgraded soon.

This is the first time since the launch of Iran’s Energy Exchange back in 2013 that crude oil is being sold at the bourse. This is especially important as the crude oil is sold in Iranian currency. The pricing has been done based on the average price of exported oil in the past one month. But the crude oil is sold only to domestic users.