Iran Cuts July Light Crude Price to Asia

National Iranian Oil Co. cut the cost for July shipments of its Iranian Light crude to refiners in Asia and increased prices for its other grades to the region, according to a company official.

The state-run producer lowered the price formula for Iranian Light crude by 72 cents, to $1.71 a barrel more than the regional benchmark, said the official, who asked not to be identified since Iran doesn't publish its price list.

The move follows a similar pricing decision this month by Saudi Aramco, the world's largest oil exporter. Saudi Arabia's state producer cut official selling prices for light grades for customers in Asia in July and raised the cost for medium and heavy crudes to that region, it said June 5.

Persian Gulf oil producers such as Saudi Arabia sell most of their crude under long-term contracts to refiners. Most of the region's state oil companies price their oil at a premium or discount to a benchmark and many follow Aramco's pricing trend.

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

Variety July June Change
Iranian Light +1.71 +2.43 -0.72
Iranian Heavy -0.68 -0.73 +0.05
Forozan Blend -0.54 -0.64 +0.10
Soroosh -3.80 -4.65 +0.85
Norooz -3.80 -4.65 +0.85

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.

Source: BLOOMBERG