Iran cuts April crude prices for Asia in fight for market share
Iran has set the official selling price (OSP) of its Light crude oil for Asian buyers at $1.20 a barrel above Oman/Dubai quotes for April, 60 cents lower than the previous month, an industry source with direct knowledge of the matter said.
The National Iranian Oil Company also cut prices for three other grades it sells to Asia, setting Iranian Heavy and Forozan at their widest ever discounts against rival grade Arab Medium from Saudi Arabia as Tehran steps up efforts to retain market share in Asia.
The April OSP for Iranian Light was just 10 cents above Arab Light, the narrowest premium since 2012.
Iran’s price cuts are attracting demand from big buyers China and India.
A jump in purchases by top Iranian crude oil buyer China pushed up Asia’s overall oil imports from the OPEC producer to a three-month high in January.
Iran has also offered to raise the freight discount on oil sales to India in return for New Delhi agreeing to boost imports.
The table below shows April crude prices to Asia, as differentials to the Oman/Dubai average. All prices are in U.S. dollars.