Bloomberg News

Iran Raises Official Selling Price for Crude Sold to Asia

March 13, 2012

Iran said it raised its official premium for light crude sold to Asia for April to $3.01 a barrel over the average of Middle East benchmarks.

The Iranian Light premium for Asia is up $1.25 a barrel from March, according to data compiled by Bloomberg. Iranian Heavy (AOSPHVAS) to the region will be priced at 89 cents above Oman and Dubai, 65 cents higher, said an official at National Iranian Oil Co. in Tehran who asked not to be identified, citing policy.

Producers such as Saudi Arabia and Iran sell most of their crude under long-term contracts to refiners. As the largest producer in the Organization of Petroleum Exporting Countries, Saudi Arabia creates the standard for regional price changes.

Iran priced its Light grade for April at a 21-cent premium to Saudi Arabia’s Arab Light, unchanged from the price relationship it maintained during the first quarter.

NIOC lowered price differentials for all its crudes to Northwest Europe. Iranian Light (AOSPLTNW) to Europe for April will be $1.75 below the Brent weighted average, 30 cents lower than March.

The following table gives differentials of Iranian crude supplied to five regions in relation to benchmark prices and the month-on-month change. Prices are in U.S. dollars a barrel.

-------------------------------------------------------------
Asia

Variety             April          March         Change
Iranian Light       +3.01          +1.76         +1.25
Iranian Heavy       +0.89          +0.24         +0.65
Forozan Blend       +1.07          +0.42         +0.65
Soroosh             -4.94          -4.24         -0.70
Norooz              -4.94          -4.24         -0.70

Prices for customers in Asia are expressed as a differential to
the average of the Oman and Dubai benchmark assessments
published by Platts, except for the Soroosh and Norooz grades,
which are priced against Iranian Heavy crude.
------------------------------------------------------------

Northwest Europe

Variety             April          March         Change
Iranian Light       -1.75          -1.45         -0.30
Iranian Heavy       -3.35          -2.80         -0.55
Forozan Blend       -3.25          -2.70         -0.55

Prices for customers in Europe are expressed as a differential
to the Intercontinental Exchange’s Brent weighted average.
------------------------------------------------------------

Mediterranean

Variety             April          March         Change
Iranian Light       -3.20          -3.20         +0.00
Iranian Heavy       -4.75          -4.60         -0.15
Forozan Blend       -4.65          -4.50         -0.15
Soroosh             -4.40          -4.05         -0.35
Norooz              -4.40          -4.05         -0.35

Prices for customers in the Mediterranean are expressed as a
differential to the Intercontinental Exchange’s Brent weighted
average, except for the Soroosh and Norooz grades, which are
priced against Iranian Heavy crude.
-------------------------------------------------------------

Sidi Kerir

Variety             April          March        Change
Iranian Light       -1.05          -1.10        +0.05
Iranian Heavy       -2.50          -2.50        +0.00
Forozan Blend       -2.40          -2.40        +0.00

Prices for Middle East customers are expressed as a differential
to the Intercontinental Exchange’s Brent weighted average.
---------------------------------------------------------------

South Africa

Variety             April          March         Change
Iranian Light       -1.75          -1.45         -0.30
Iranian Heavy       -3.35          -2.80         -0.55
Forozan Blend       -3.25          -2.70         -0.55

Prices for customers in South Africa are expressed as a
differential to the Intercontinental Exchange’s Brent weighted
average.
--------------------------------------------------------------

To contact the reporter on this story: Ramsey Al-Rikabi in Singapore at ralrikabi@bloomberg.net

To contact the editor responsible for this story: Mike Anderson at manderson34@bloomberg.net


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