Iran Will Not Switch Oil Sale Market from Europe to Asia

Tag : crude oil
Iran is maintaining diversity in its markets for oil sales and isnot switching from Europe to Asia, a senior Iranian energy officialsaid on Sunday.

Iran said on Saturday it had reduced sales of crude by 70,000barrels per day (bpd) to a European buyer, France's Total, in linewith a decision by OPEC to cut output by 1.5 million bpd. Iran'sshare of the OPEC cut is 199,000 bpd.

The two biggest buyers from Iran, which is the second biggest oilproducer in the OPEC come from Asia - Japan and China.

"The diversity of crude oil sale markets is being maintained asbefore. We do not, by any means, confirm Iran's oil destinationmarkets have changed from Europe to the Far East," Ali Ashgar Arshitold Iran's ISNA news agency.

Arshi is the head of the National Iranian Oil Company'sinternational affairs department.
"To preserve oil income at the highest level, it is necessary toobserve market diversity as sometimes crude oil is cheap in onemarket and expensive in another," he said.

"That is why it is necessary that we maintain a presence in allmarkets in order to maintain a balance."

To honour OPEC cuts in the past, Iran has reduced sales to Europe,the destination for most of its spot crude sales. The bulk ofIranian oil sales are in term contracts, experts say.

"Regarding production and export of crude oil, it is done accordingto OPEC's decision and we have not had any violation in eitherproduction or sales. Currently, the sale of crude oil is carriedout well at appropriate market prices," Arshi said.

He also accused the United States of trying to deter buyers,saying: "America is putting pressure on some countries with tieswith Iran not to buy oil from us or to minimise sales from us."

Washington is trying to isolate the Islamic Republic for what itsays is a bid to build nuclear weapons. Tehran denies this,insisting it wants to master nuclear technology to make electricityand save more of its oil and gas for export.

He also said Iran was not storing any crude in the Gulf.

"There is at the moment no stockpile of crude oil floating in thePersian Gulf," the report quoted Arshi as saying.

Industry experts said Iran had been storing oil at sea as globalspring refinery work cut demand for Iran's crude. Iran reportedselling crude from floating storage over the summer.