Iran Makes Oil Market Statement With First Pricing for Europeans
- Persian Gulf country breaks with past to undercut bigger rival
- Discount for heavier oil is deepened in Asia, Mediterranean
Iran just revealed its oil prices to European buyers for the first time since sanctions were lifted against the Middle East country. The most competitive pricing compared with Saudi Arabian supply in 21 months underscores its intention to win back market share.
Iran Heavy, one of the country’s main export grades, will cost $1.25 a barrel less than Saudi Arabia’s most similar crude in March, notices from both nations’ state oil companies show. The Persian Gulf country supplied Turkey during the sanctions and continued to publish prices for Europe throughout the measures. Its most recent discount will be the deepest against the Saudi grade since June 2014. In Asia, having tracked Saudi prices since at least 2006, Iran is also giving deeper discounts for the grade.