News ID: 203971
Published: 0339 GMT November 07, 2017

Iranian benchmark for oil just topped $60 per barrel

Iranian benchmark for oil just topped $60 per barrel

After registering an unprecedented economic growth, Iran's benchmark for oil improved after its crude passed $60 per barrel.

Iran Heavy exceeded $60 per barrel in early Tuesday trading which was relatively on par with the basket of crude oil grades for OPEC members.

Iran's benchmark was trading at a discount of about $1 per barrel against the Dubai benchmark, but about $3 per barrel more than the US benchmark, West Texas Intermediate.

IRNA said oil prices are showing an upward trend because of regional crises and the looming threat of violence in Nigeria. "Iran's oil production is about 3.9 million barrels a day, including the 2.2 million barrels exported," the report read.

State-run National Iranian South Oil Company, which accounts for about 80 percent of total Iranian oil production, said this week its total crude oil production is up more than one million barrels per day from last year.

Sanctions on Iran before the landmark nuclear agreement in 2015 left the economy under pressure. Its heavy crude was around $45 per barrel in 2014, but hit the mid-$20 range when oil markets collapsed early last year.

According to a country profile from the US Energy Information Administration, Iran's oil export grades, both heavy and light, were displaced under sanctions pressure by similar grades from fellow members of the Organization of Petroleum Exporting Countries.

EIA noted that Asian economies were the primary buyers of Iranian crude oil.

The discount for WTI compared with rival grades, meanwhile, makes US oil more competitive in the region.

In October, the Central Bank of Iran told the representatives from the International Monetary Fund that a 'new picture' of economic growth was emerging in the post-sanctions era.

"The Iranian economy experienced an unprecedented growth last year," said Akbar Komijani, CBI's deputy governor in a statement. "Single-digit inflation and relative stability in the foreign exchange market testify to its potentials and predictability."

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