Extension of contracts for Iran’s oil sales

Tehran, Dec 8, IRNA – International Director of the National Iranian Oil Company Seyed Mohsen Qamsari said all contracts for the sale of Iran’s oil in 2015 have been signed. He said oil market forecasts have become very hard and stabilization of output ceiling of the Organization of Petroleum Exporting Countries (OPEC) has somehow escalated the issue. “Under these circumstances it is hard to say in what direction the market is moving and to what extent will the oil prices drop in coming days. However, conditions governing over the market show market tendency to further cut the oil price.” The official further remarked that with the drop in oil price at the world market, price of oil products also went down and this reduced the supply of oil products to the market. This shows that as a result of a drop in oil prices, consumption of oil products has increased in which case there is a possibility that the market will be boosted in a near future.” Replying to a question whether with the rise in demand in the cold weather the 1.5 million surplus barrels of oil will be absorbed, he said this depends on the trend of demand. “If the extent of demand which is currently available in the market is removed in coming days this amount of oil will be definitely absorbed.” Qamsari noted that the oil market is currently faced with problems for the sale of different light and sweet crude oil but there is no problem with regard to different heavy and sour oil which is the main part of the crude oil in the Middle East. Stressing that the oil market was confronted with a shock in the aftermath of the recent OPEC meeting, he said under the status quo the oil market is prepared to return to the situation before the OPEC session but the market is still affected by remarks of certain influential people. As for Iran’s oil sale in 2015, Qamsari said at present parts of the contracts for oil sale in 2015 have been signed with Iran’s traditional consumers and some others will be signed in the month of April. China, India, South Korea, Turkey and Japan are Iran’s traditional buyers to whom oil was sold with regard to the agreement signed between Iran and G5+1 group in Vienna on November 24 the same as the previous years. In reply to a question whether the price for selling Iran’s oil in January has been set, the officials said: “The price has not been fixed yet and we should wait for the oil market in coming days.”/end