TEHRAN – Director of international affairs department of the National Iranian Oil Company noted that no heavy crude oil produced by Sorush and Noruz oil fields has remained in stores.

Hojjatollah Ghanimifard told Petroenergy Information Network that all heavy crude oil from the said fields, which was previously stored in floating tanks, has been sold out within frame of long-term contracts or single consignments and another part of those fields’ crude is being sent to Bandar Abbas refinery to be treated.

The official added that if Bandar Abbas refinery develops its capacity to treat heavy crude oil, National Iranian Oil Company can reduce the amount of oil which is sold as single consignment.

“Based on a long-term plan, up to 100,000 barrels per day of total production of Sorush and Noruz oil fields will be sent to Bandar Abbas refinery, but at present, most of that oil is being exported,” he added.

The official expressed hope that proportion of Sorush and Noruz oil which is exported to what is treated by domestic refineries will become even over the long run.

Director of international affairs of National Iranian Oil Company further noted that projections about OPEC and non-OPEC production during three months of summer show that strategic reserves will continue to rise, which means that there is no shortage of oil in the market.

He stated that under current circumstances, there is enough sour and heavy crude in the market.

“These are crude varieties that are not often used at refineries and cannot yield high quality products. Therefore, their presence in the market will encourage oil stockpile,” he said.

Ghanimifard noted that recent increase in oil prices, especially after armed conflicts in the Middle East, was the result of increased price of oil products and, for this reason, “price of light and sweet crude oil has increased in the face of heavy crude varieties”.

“Price difference between heavy crude of Dubai and Brent light crude increased to 6.8 dollars a barrel after initiation of the current crisis in the Middle East, while before clashes, the difference was only 3 dollars. This shows that increase in price of sour and heavy crude is not parallel to increase in price of sweet and light varieties and the gap has deepened,” he added.

He noted that for every 10 dollars increase in oil price, the price of every barrel of gasoline rises 12-15 dollars.