Wednesday, March 23, 2011

Oil Rising

Brent Crude future today hit $116 per barrel. The price of Iran’s Heavy, the country’s main export crude grade, is pegged to Brent, nearing $110 per barrel.


Anonymous said...

Good to see that Iran is benefiting from high oil prices. I hope the oil prices will remain steadily high for the foreseeable future.

Jdog Drake said...

No doubt Iran is benefiting from the higher oil price, but a clarification that while Iranian Heavy is the dominant export grade (around 40% of total exports) Iranian oil is priced against a differential to Brent only if heading to NW Europe or the Med. Cargoes heading to Asia are priced against the average of the Oman/Dubai marker, which is averaging about $4/b lower this year. Of course heavy is not the only grade, with significant (about 30%) volumes in Iranian light--which is usually a dollar or two higher than heavy.

Nader Uskowi said...

Anon 9:00 AM,

Thanks much for clarification and the info.