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Iran’s $57-mn diesel cargo sold at local exchange within minutes

US Rep. Ilhan Omar (D-MN) (L) talks with Speaker of the House Nancy Pelosi (D-CA) during a rally with fellow Democrats before voting on H.R. 1, or the People Act, on the East Steps of the US Capitol on March 08, 2019 in Washington, DC. (AFP photo)
File photo shows samples of diesel produced in Iran being shown to customers in an exhibition.

Reports in the Iranian media shows a valuable cargo of diesel has been sold at a local bourse within minutes of offering to foreign customers, a first case of diesel export for the country amid sanctions that have hampered direct sale of crude.

The Tasnim News agency said the 105,000-ton cargo had been sold at a price of $550 per ton during trade earlier in the day at the export ring of Iran Energy Exchange (IRENEX).

It said the sell-off generated some $57.750 million in revenues, without elaborating on the identity of the buyer and the Iranian refinery that sold the cargo.

However, the report indicated that the cargo would be delivered to the customer on a Free On Board (FOB) basis in the southern Iranian port of Bandar Abbas on October 2, 2019.

Facing US sanctions on its routine export of oil, the Iranian government has used the IRENEX as a mechanism to attract customers, especially from the neighboring countries, to buy Iran’s energy and petrochemical products.

Trades at the bourse have proved successful since it started earlier in the summer, as authorities have reported hundreds of millions worth of sell-offs for cargoes of gasoline and liquefied natural gas (LNG), among other exchanges.

The IRENEX said early in September that exports via the bourse had topped $100 million on a weekly basis.

That would mean a major boost to government's oil and gas revenues that have suffered as a result of American sanctions imposed since November.

The export of gasoline through the local bourse has been touted as a major success for Iran, a country that was dependent on gasoline imports only a decade ago.

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