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Analyst: Iran oil sale affected by recent events

February 10, 2020/ 10:09

Tehran. Iran's oil sale have been effected by recent global events, while the oil ministry seeks to involve universities to boost technological development in the industry, said an oil analyst Nersi Ghorban commenting a contract recently concluded between the Oil Ministry and universities in an interview with Trend.

"There is no proper estimation of the signed contracts with universities over past years," the analyst said.

Iran's Oil Ministry has signed 26 major contracts with Iranian universities in November 2019. Two of them were signed with Sahand and Tabriz universities on technology and geological studies in western and northwestern Iran.

"The oil price has increased after the assassination of Qassem Soleimani, but then it started to fall due to drop of China's economic growth caused by the outbreak of coronavirus," Ghorban said.

"Iran's budget for next Iranian year (begins March 21, 2020) forecasts sale of 1 million barrels of oil per day at the price of $57. Given the latest developments, the price can be even more. By my estimations, the fluctuation of oil price will be from $60 to $70," noted the expert.

"As for the oil export, nobody knows the process of sale. Oil minister Bijan Zangeneh has repeatedly told press that he would not reveal the process of oil sale, since it will create an obstacle for export, so media should not be aware of the process in the sanctions' situation," said Ghorban.

"Iran's oil sale has been challenged by the sanction as well as by the problem of returning oil export foreign currency revenue. In addition to supply and demand that are main factors in setting the price, tensions and international situation have effected the global oil price," the analyst added.

"At the moment, there is pressure from investors and market on how the Iranian oil shall be supplied to the global market, whether the export shall be more than 3 million barrel per day or less, or if production and supply will remain at the same level," Ghorban noted.

"The global oil market situation depends only on regional stability. Iran should increase the return of foreign currency revenue from export even under such limited circumstances," he said.

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