Wednesday Nov 27, 2024
Wednesday Nov 27, 2024
Monday, 14 May 2012 00:00 - - {{hitsCtrl.values.hits}}
TOKYO (Reuters) : Iran has cut its official selling prices (OSPs) for June-loading crude to Asia from May, in line with market expectations, but raised those to Europe, trading sources said.
The rise in OSPs to Europe was partly due to the fact that Iran cut prices to the region by a bigger margin that it did to Asia in the previous month.
As expected, Tehran cut its Iran Light prices to Asia by $1.30 from May to a $1.36 a barrel premium to Oman/Dubai.
Iran at the same time raised prices of the same grade to the Mediterranean by $0.7 from May to ICE Bwave benchmark minus $4.55 a barrel, and those to northwest Europe by $1.25 to ICE Bwave benchmark minus $2.95 a barrel.
Iranian crude oil imports to European Union nations are subject of an embargo from July 1.
Last month, Iran cut May OSPs to the Mediterranean by $1.95 to $2.05 per barrel from April and those to northwest Europe by $2.45 to $2.60. The cut was much steeper than price reductions of 10 to 35 cents for Asian customers.
Buyers in Asia have cut crude imports from Iran in the past couple of months as the United States and European Union push ahead with sanctions aimed at making Iran abandon its nuclear program, which the West fears will be used to develop weapons.
Tehran insists its nuclear program is for peaceful purposes.
Japan is reducing Iranian imports even though overall oil demand is rising for power generation. South Korea, India and China, the other three main buyers of Iran’s 2.2 million barrels per day of exports, have made deep cuts in the first quarter as sanctions make it difficult to pay, ship and insure the crude.
The table below shows Iran’s June crude oil prices with those for May in brackets.
Prices of Iranian Light, Heavy and Forozan for northwest Europe and the Mediterranean are differentials to ICE Bwave. Prices for Asia are differentials to the Oman/Dubai average. Those of Soroush and Norouz are differentials to Iranian Heavy.
