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Iran wins back 80% of its European oil market

17 July 2016 11:57

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An NIOC official has announced that Iran has managed to regain 80 per cent of its lost share in the European oil market.

Executive Director for International Affairs at National Iranian Oil Company (NIOC) Seyyed Mohsen Ghamsari said Iran has no stored oil on water asserting “a negligible amount of gas condensate exists on water since these materials do not have constant use and shall remain on water until customers demand them.”

The official pointed to oil sales in single-piece shipment maintaining “normally, customers purchase their required oil by inking long-term agreements with providers though they supply about 20 per cent of their demand within the framework of spot contracts in order to move in line with market trends as well as to buy crude oil at lower prices.”

“Market conditions will decide on the amount of oil to be sold via long-term deals or through spot contracts,” highlighted Ghamsari explaining “under certain circumstances, including when production outpaces exports due to repairs or security issues, sellers also opt for dispatching oil in single-piece shipments.”

The NIOC official, while comparing current volume of Iran’s crude exports to Europe with that of pre-sanction years, said “statistics reveal that approximately a quarter of Iran’s crude is being dispatched to Europe indicating that the country has almost reclaimed its previous share.”

“At the present time, volume of Iran’s oil deals with European countries exceeds that of pre-sanction era,” emphasized Ghasari confirming “Iran has now retrieved 80 per cent of its previous market share in Europe.”

He touched upon a claim made by a western media that Iran’s oil exports dropped in June observing “volume of exports in one month cannot be a good criterion since loading might be interrupted or the customer might face problems in receiving the product.”

“Accordingly, a three-month time interval is required to judge whether crude exports have increased or fallen,” stressed the NIOC official.

Ghamsari further stated that Iran has so far repossessed its share without offering discounts; “although many countries have the inclination to manipulate oil prices in an attempt to increase their market shares, Iran’s credibility is high enough to attract customers who attach importance to supply security and reliability regardless of discount prices for oil,” he concluded.

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