NIOC offers the 7th batch of crude on Iran Energy Exchange!
– After a couple of unsuccessful attempts of crude oil offering on Iran Energy Exchange, NIOC is to sell oil for the seventh time on IRENEX with 5 major changes in the bid conditions. Considering to be the last tender of 1397, the national oil company grants buyers the following incentives hoping this time it doesn’t fail:
- Buyers can deposit 6% of pre-payment (which had to be all in IRR before) in foreign currency;
- All NIOC certified FX transaction schemes will be accepted in the settlement process;
- Buyers have the option to receive the cargo in a 4 months period;
- Other NIOC approved delivery locations are available;
- Buyers can request for a land delivery from Tabriz Oil Refinery;
This offering is for 1 mn barrels of crude oil (in 35K minimum order lots) at a base price of USD 61.37 per barrel.
– In their latest stand with regards to FATF related amendments, a member of Iran’s Expediency Discernment Council told the press that almost 2/3 of its members are against Iran joining the Palermo convention and ratifying amendments asked by the task force. FATF has left Iran with the last grace period of 4 months in order to make up its mind and choose whether the nation’s name shall be back at the blacklist or not. Iranian hardliners are extremely against exposing confidential financial information in times of extreme sanctions while the reformists are pushing the government to accept a global standard.
– Unconfirmed sources have that the US may probably extend the exemptions on Iran oil purchases under the assumption that buyers will reduce their orders by at least 20%. Moreover, a thinner list of target countries may benefit from this new round of exemptions and speculations have that India and China will be the only major buyers of Iranian oil this time. Up to this point, India was purchasing 9 mn barrels of crude per month (300K per day) from Iran and this figure could be reduced to 8 mn barrels after the US decision.
In the Market
Equities continued their recent super bullish trend today as investors finally decide to put their money back in the game after months of range bound trades. TEDXPI (+0.82%) jumped for almost 1,400 points to conquer the 172K level in power and closed at 172,522.69. This while IFEX (+1.07%) move was even stronger which led to a settlement of above 2,156.83 level, just a few green sessions shy of the index historic record of 2,240.
Today’s rally was mostly driven by the giants of the heavy weighted Chemicals (+2.15%) sector. Persian Gulf Petrochemical (PKLJ, +2.71%) had the highest impact on the overall index by 244.38 points while its sister company, Pars Petrochemical (PARS, +4.18%) ended the day with a buy queue.
The retail side’s participation was so strong that even the “must sell” orders from institutions who want their money before the new year holidays could not resist, however, it led to rather balanced trades contrary to the last trading session. Agah analyses show that during the last couple of trading days, a massive amount of fresh funds have been injected into the market by mostly individuals which did not leave the cycle up to this point. Far better than expected monthly reports of commodity-based tickers herald that there are no worries with regards to their export activities whatsoever which made investors keep their money in the game.
Traditionally, the holidays’ short sessions are with positive movements mostly and experts expect booming days for equities in the next year coming. Parallel investment market of gold coins and FX were with limited fluctuations today as there are no concrete motives for a fall or hike these days. Market participants are bullish about a higher than inflation performance for the gold market and viewpoints around FX fluctuations widely varies. USD/IRR rate experienced a range bound movements during the last couple of days and it stood around 129,000 to 131,000 range today. This is while the price of Bahar Azadi Gold coins lowered slightly to 46,000,000 per piece.
DISCLAIMER: This report has been prepared and issued by Agah Brokerage Firm on the basis of publicly available information, internally developed data and other sources believed to be reliable. The information contained herein is not guaranteed, does not purport to be comprehensive and is strictly for information purposes only. Agah does not assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions. Any expressions of opinions are subject to change without notice.
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