Iran in rare fuel barter deals with traders

Iran is reported to have started rare barter deals with major commodity traders through which it provides gasoline in exchange for high-quality fuel oil.

Reuters has reported that a scheme to the same effect is already underway with Vitol and Glencore ever since the sanctions against Iran were lifted in mid-January.

It said both traders have won the right to lift a combined total of at least 200,000 tons per month of Iranian fuel oil from March through May.

The agency further emphasized that the barter deals, which it said Iranian industry sources have acknowledged also included some done by Russian companies, have helped to wipe out the short-term fuel oil available for export, added the official.

"There is no extra fuel oil available in the short term, because they are all committed," Reuters quoted an unnamed Iranian official as saying.

Another Iranian industry official estimated Iran usually exports 700,000-800,000 tons of fuel oil a month during the spring months starting from late March, when warmer weather begins to curtail the fuel oil used for generating power during winter months, the agency added.

SS