Iranian crude oil is typically positioned between Dubai and Oman in terms of quality and price. It is heavier and sourer than WTI and Brent, but lighter and sweeter than Dubai and Oman. As a result, it is often priced at a discount to WTI and Brent, but at a premium to Dubai and Oman.
Here is a table comparing the characteristics of Iranian crude oil to the four main benchmarks:
| Feature | Iranian Crude | WTI | Brent | Dubai | Oman |
|---|---|---|---|---|---|
| Gravity | 38-41 API | 40-42 API | 39-42 API | 33-35 API | 34-36 API |
| Sulfur content | 0.7-1.2% | 0.1-0.2% | 0.3-0.4% | 1.7-2.5% | 1.5-2.0% |
| Viscosity | Medium | Light | Light | Medium | Light |
| Price relative to Brent | 1-8% discount | 0-3% premium | 0-3% premium | 2-5% discount | 1-4% discount |
The price of Iranian crude oil can vary significantly depending on the global oil market conditions and the specific grade of oil being exported. However, it is generally priced between Dubai and Oman, and it is often used as a reference point for pricing other sour crude oils from the Middle East.
Here is a more detailed breakdown of the characteristics of Iranian crude oil:
- Gravity: Iranian crude oil is typically in the medium gravity range, with a gravity of 38-41 API. This means that it is heavier than light crude oil, but lighter than heavy crude oil.
- Sulfur content: Iranian crude oil is considered to be sour crude oil, with a sulfur content of 0.7-1.2%. This means that it contains a higher amount of sulfur than sweet crude oil. Sulfur is a contaminant in crude oil, and it can be difficult and expensive to remove. As a result, sour crude oil is typically priced at a discount to sweet crude oil.
- Viscosity: Iranian crude oil is considered to be medium viscosity oil, which means that it is neither very thick nor very thin. This makes it well-suited for a variety of refining processes.
Iranian crude oil is a valuable source of energy for many countries, and it is an important part of the global oil market. However, it is also subject to political and economic factors, and its price can be volatile.
Summary:
Iranian crude is a medium gravity and medium viscosity oil with a higher sulfur content compared to sweeter crudes like WTI and Brent. Its price varies based on market conditions and the specific grade, but it generally serves as a reference for pricing other sour crudes from the Middle East.
Iranian crude oil falls between Dubai and Oman in terms of quality and pricing. It is heavier and more sulfurous than WTI and Brent but lighter and sweeter than Dubai and Oman. This positions it with a price discount relative to WTI and Brent and a premium over Dubai and Oman.
