Iran is going to offer its crude to Asian buyers, to be delivered in January, at US$1 per barrel less than this month, Reuters reports, citing a pricing document. The official selling price of Iranian Light crude was set at US$0.30 above the Platts Dubai/Oman average for January.
This makes Iranian Light US$0.30 a barrel cheaper than Saudi Arab Light, with Iranian Heavy costing US$1.25 less per barrel than the Kingdom’s Arab Medium grade, Reuters calculates.
The biggest buyers of both Iranian and Saudi crude are India and China, and now both countries are expected to boost their intake of Iranian oil after they were granted U.S. sanction relief for six months following the reimposition of sanctions on November 5.
Keeping its discounts in place is the only way for Iran to ensure buyers continue paying for its crude in the context of sanctions. That and finding payment mechanisms that do not trigger punitive measures from Washington.