By John Lee.
Iran is said to be planning to sell a new grade of crude oil in March or April, as it prepares to boost production following the removal of sanctions.
An official at state-run National Iranian Oil Company (NIOC), who declined to be identified, told Bloomberg Business that most of the crude in the new blend will come from the Yadavaran, South Azadegan and North Azadegan fields.
The new grade will be heavier than its existing ‘Heavy’ blend and will be lighter than the Soroosh and Nowrooz crudes, the NIOC official said.
Victor Shum, IHS’s head of oil market research, told Bloomberg that a new grade coming into an oversupplied market will have to be discounted.
Reuters reports that sellers of a new ‘Basra Heavy’ crude oil grade are competing fiercely to win market share on the U.S. Gulf Coast, as the high sulfur content has limited appeal for refiners.
(Source: Bloomberg Business)