cheap oil, empty table; Behind the curtain of discount and embargo on oil

According to Energy Press, Iran, the owner of the huge treasure of oil and gas, under the heavy shadow of Western sanctions, has made every effort to bring its black gold to the world markets in recent years. Meanwhile, China, the sleeping dragon that is fast becoming the world’s most powerful economy, has become Iran’s main customer due to its dire need for oil to fuel its engine of progress.

Elections and conflict over oil

Meanwhile, Iran’s presidential election in 1403 witnessed a heated verbal conflict between the candidates over the issue of oil exports. Saeed Jalili created controversy by claiming to increase oil exports from 200,000 barrels in the Rouhani government to 1.5 million barrels in the 13th government with his ideas.

The central bank and experts rejected this statistic and announced that oil exports were much lower. Zanganeh, the former oil minister, criticized Jalili for presenting false statistics and repeating them, and he replied that the amount of oil sold in Rouhani’s government was about 1.5 million barrels per day.

30% waste of oil money

But the story did not end here and Mohammad Baqer Qalibaf, another election candidate, also pointed out that 30% of the hidden costs of the embargo are lost in the money transfer network and criticized Saeed Jalili for his ideas that led to this waste. .

Selling oil at what price!
But the story of this deal is darker than it seems. There are whispers of Iran’s heavy discounts to compete with its powerful rival, Russia, in the market. Some sources, including Reuters, claim that Iran supplies China with 5 to 7 percent (between 4 and 12 dollars) below the price of crude oil. It is as if Iran is selling its national wealth at a cheap rate!

This issue was also prominent in the election debates, so that Jalili claimed that the oil discounts in the 13th government and after the withdrawal of the United States from the JCPOA were less than the discounts granted during the JCPOA period. But this claim was also denied by Zanganeh and Zanganeh claimed that during the twelfth government, not even one cent of oil discount was given.

What is the final price of each barrel of oil?

Confessions of election candidates revealed important parts of oil sales. Abdallah Babakhani, an energy expert, wrote in a note in response to Jalili’s statements: Let’s remember that people’s tables are not filled with statistics and facts cannot be hidden in today’s world. Last year, Iran exported about 36 billion dollars of oil and gas condensate, which after deducting discounts, brokers’ fees, the cost of sea transportation, the cost of multiple conversions of different currencies, and the cost of exchange, finally reached about 28 billion dollars in the hands of the Central Bank and the budget program. This means that after all costs, Iranian oil has been sold at around $61.