Last week 150,000 MT VB were supplied in IME, by 11% increase, 340,000 MT de- mand were registered. In the prior week, the supply rate soared by 7,000 MT clearly the whole amount was sold and weekly VB’s fluctuation rate was from 0.9% to 14%. Due to increased output volume from Tehran, Bandar Abbas, Isfahan, and Arak re- fineries, the amount of offers has increased. Furthermore, VB from Isfahan refinery increased the most by 14% and the ratio between VB’s close price and IME’s export bitumen reached 90%, also VB’s average value in Free Market USD was assessed at 269$. In addition, VB’s value in the Center of Exchange Dollar has reached 323$. VB’s average price base on the Free Market Dollar demonstrates a 30$ increase.

Supplies in IME’s export market were around 40,000 MT and they were 7,800 MT less than the average of the prior month. Due to halted offers from Bandar Ab- bas Jey Oil and demand lackluster for Bandar Abbas Pasargad Oil Drum Bitumen, Abadan, Tehran, Tabriz, and Arak Pasargad Oil total amount of supplies were de- clined. For this amount of outputs, 36,230 MT demand was registered, and as it was less than supplies, not all of them were traded. Considering the free market USD to IRR exchange rate, at the published date, the bargained equivalent rates for Is- fahan Jey Oil Bulk Bitumen were 292$ and 309$. Prices for Isfahan Jey Oil Drum Bitumen was 359$. Furthermore, the rate for Bandar Abbas Pasargad Oil was 301$.

According to the latest Currency Committee enactment, the deadline for clearing foreign currency commitments in 2022-23 was extended to the end of Aug-Sep. During this period, exporters attempting to clear their commitments will be in- cluded in tax exemptions. Before this, the deadline was by the end of June-July.

The head of Qeshm free-zone customs said, “The first heavy ship docked at Harra pier to get loaded and export 45,000 MT of bitumen to China.

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Last week 143,000 MT VB were supplied in IME, close to the previous week, 340,000 MT demand were registered. In prior week, the supply rate declined by 7,000 MT clearly the whole amount was sold and weekly VB’s fluctuation rate was from 0.7% to 8.6%. Due to reduced output volumes from Bandar Abbas re- finery, the amount of offers has declined. Furthermore, VB from Abadan refinery increased the most by 8.6% and the ratio between VB’s close price and IME’s ex- port bitumen stayed at 90%, also VB’s average value in Free Market USD was assessed at 284$. In addition, VB’s value in the Center of Exchange Dollar has reached 336$, which demonstrates 15$ soar in comparison to the week before.

Supplies in IME’s export market were around 48,000 MT and they were 4,800 MT less than the prior month’s average. Due to offers from Tabriz, Arak, Abadan Pas- argad Oil, and Pars Behin Qeshm Oil total amount of supplies was increased. For this amount of outputs, 77,800 MT demand were registered and as it was more than supplies, all of them were traded. Considering the free market USD to IRR ex- change rate, at the published date, the bargained equivalent rates for Isfahan Jey Oil Bulk and Drum Bitumen were 319$ and 375$ respectively. Price for Bandar Abbas Pasargad Oil Bulk Bitumen was 303$. Furthermore, the rate for Tabriz and Abadan Pasargad Oil was 303$ and Pars Behin Qeshm Oil Bitumen was assessed at 315$.

Pasargad Oil Company’s annual general meeting was held at Jul 19. During this meet- ing, the firm’s CEO emphasized achieving 1,600,000 MT in production. He added, in the last winter with the natural gas shortage, most of the firms produced fuel oil, as a result, the company faced VB shortage and it had an impact on outputs. The CEO also mentioned that the firm is aiming to sell energy via IME and it is under process.

Meetings for Isfahan and Bandar Abbas were held in the previous week and both companies highlighted the importance of refinement firms’ demands from NIORDC. In Bandar Abbas refinery meeting it was announced that NIORDC should pay 240,000 billion IRR but its’ funds are blocked. In this situation, projects will not execute and a 5% government discount would be canceled.

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Last week, the Iranian Mercantile Exchange (IME) witnessed a supply of 148,000 metric tons (MT) of Vacuum Bottom (VB) with a notable increase of 6%. On the demand side, 361,000 MT of VB was registered. In the previous week, the supply rate had increased by 5,000 MT, and all of the supplied VB was sold, resulting in a weekly fluctuation rate of 2.6% to 10.3%. The surge in offers is attributed to higher output volumes from refineries in Tabriz and Shiraz. Particularly, VB from the Tehran refinery saw the most significant in- crease at 10.2%. The ratio between VB’s closing price and IME’s export bitumen reached 93%, indicating a reduced gap between the two. As a result, there are expectations of pos- sible divergence in the upcoming week. The average value of VB in the Free Market was assessed at $298 USD, while its value in the Center of Exchange Dollar reached $355 USD.

In the export market of the Iranian Mercantile Exchange (IME), supplies amounted to approximately 44,000 MT, which was 10,000 MT less than the average of the previous month. This decrease was attributed to halted offers from Arak Pasargad Oil and Jey Oil Drum Bitumen, leading to a reduction in the overall supply. Despite this, there was strong demand, with 76,650 MT of bitumen being registered, surpassing the available supplies. As a result, all of the supplies were traded. Considering the exchange rate between the US Dollar (USD) and the Iranian Rial (IRR) in the free market at the published date, the ne- gotiated equivalent rate for Isfahan Jey Oil Bulk Bitumen was $321 USD. For Bandar Ab- bas Pasargad Oil Bulk Bitumen, the price was $328 USD, and for Drum Bitumen, it was $378 USD. Additionally, the rate for Pars Behin Qeshm Oil was set at $313 USD per MT.

Pasargad Oil Company recently released its financial statement for the first quarter. Ac- cording to the report, the firm achieved sales of 37 trillion IRR, and its net profit amount- ed to 4 trillion IRR. Notably, the company’s export sales reached 142,000 MT, indicat- ing a significant increase of ×2 compared to the previous year. However, domestic sales were 127,000 MT, reflecting a notable decline compared to the same period last year.

During the past week, the financial statements of Isfahan Oil Refinery Company and Bandar Abbas Oil Refinery were made public. Both companies reported a significant de- cline in their net profits. Isfahan Oil Refinery Company stated that the reason for the profit decrease was a reduction in the price difference between crude oil and its refined products. Similarly, Bandar Abbas Oil Refinery attributed the decline in net profit to a reduced gross operating profit margin, which resulted from lower oil product prices.

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