Minister assures oil sales unaffected by market changes
Iranian Oil Minister Mohsen Paknejad dismissed concerns about the impact of the US taking control of Venezuelan oil on Tehran's crude sales, asserting that authorities maintain full command over pricing strategies and market negotiations.
“We have full oversight of our area of work, and there is no need to worry about these matters,” Paknejad said, ILNA reported.
Responding to speculation that global oil prices could fall following the United States’ seizure of Venezuelan oil — raising concerns that Iran’s oil might be sold below budgeted prices — Paknejad said the oil market was inherently dynamic.
“Oil is a dynamic market,” he said.
He noted that base prices are set according to global benchmarks that are beyond Iran’s control and are influenced by external variables.
“Setting base prices based on global indices that are outside our control is subject to exogenous variables,” Paknejad said.
He added that Iran’s ability to manage changes and coordinate with end buyers takes place through negotiations aligned with operational costs, while market supply conditions and demand volumes also fluctuate seasonally.
Paknejad explained that, "Iran's mastery and ability to make adjustments and coordination with end buyers proceed through negotiations commensurate with operational costs, and market supply conditions and demand volume also change seasonally."
Paknejad said multiple indicators affect price determination, adding that Iranian officials take all relevant benchmarks into account to secure the best possible sale price.
“Different indicators play a role in determining prices, and without doubt our colleagues consider such indicators and set the best possible price for sales,” he said.
According to ILNA, Paknejad also responded to concerns that Washington, having control over Venezuelan oil, might seek to strike deals with Iran’s long-standing customers such as China.
“We have full oversight of our area of work, and there is no need to worry about these matters,” he said.
Iran does not release detailed crude export figures, citing US sanctions that it says require confidentiality.
China’s crude oil imports from Iran soared to their highest level in four months in November, Reuters reported in December, citing data from analytics firm Kpler.
Kpler figures showed inflows of Iranian shipments increased by 233,000 barrels per day (bpd) from October to reach 1.35 million bpd in November, the highest since August.