Iran must reduce its officialoil pricein order to hold its position in global oil markets, according to a report released byIran's official news agency, IRNA, on Tuesday.The officialsales pricefor oil must be lower to preserve Iran'smarket position and to retainclients, the report said.
After Saudi Arabia lowered its sale price, Iran'soil buyers beganpurchasingfrom Saudi Arabia, the report added.
Saudi Arabia was the first to reduce itsofficial sales price for oil, and the move was followed by other oil-producing countries, the report said.
Mohsen Ghamsari, manager of the department of international affairs in the National Iranian Oil Company, saidthatIran would discountits official sales price. Butthe move is a financial change, and is not aboutcompetition with Saudi Arabia.
Saudi Arabia reduceditsofficial sales priceto the U.S.in early December, to compete with the booming domestic oil production and to maintain its market shareamidfalling oil prices.
The global benchmark Brent crude oil price has decreased nearly 50percent since June, and has stabilized around$60 per barrelthis week.
Despite having thefourth-largest provedcrude oil reserves in the world,Iran's crude oil production decreased dramaticallydue tosanctions,to one million barrels per day in 2013from4.2 million barrels per day in 2011, according to the U.S.Energy InformationAdministration.
The International Monetary Fundestimates thatIran's oil and natural gas export revenue fellin the fiscal year of2013-2014by 11 percentto $56 billion.
By World Bulletin
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