Iran’s Sepahan Oil drops base oil prices for third week

24 September 2012 11:25  [Source: ICIS news]

SINGAPORE (ICIS)--Iranian major Sepahan Oil dropped its list prices of SN500 base oils for a third consecutive week in line with the overall bearish sentiment in the Middle East market, a company source said on Monday.

Sepahan Oil’s SN500 prices fell by $20/tonne (€15.40/tonne) to $990/tonne FOB (free on board) Iran and by $15/tonne to $1,025/tonne CFR (cost & freight) United Arab Emirates (UAE) during the week ended 19 September, the source said.

This is the third time that Sepahan Oil has lowered its prices. The supplier first cut its prices by $10/tonne to $1,040/tonne FOB Iran and $1,070/tonne CFR UAE in the week ended 6 September, according to data from ICIS.

The refiner subsequently reduced its prices of SN500 to $1,010/tonne FOB Iran and $1,040/tonne CFR UAE in line with the prices in the broader Middle East market, according to the source.

“Iranian base oil refiners, especially Sepahan Oil, usually reflect price movements much later from those in the broader market,” a market player said.

“Sepahan Oil’s decline in prices was expected by most players because the transacted prices in the market started to fall in late July. The company’s prices at the time were still high at $1,100/tonne FOB Iran and $1,130/tonne CFR UAE,” he added.

($1 = €0.77)

By: Andrea Heng
+65 6780 4359

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