Author Topic: Another Milestone for Iran Oil, Vitol does $1 Bln Pre-Finance Deal  (Read 362 times)


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News continues to flow around Iran oil. Reuters reports four sources confirm that Vitol has clinched a deal with the National Iranian Oil Co. (NIOC) to loan it an equivalent of US$1 billion in euros. The loan is to be guaranteed by future exports of refined products, familiar with the matter said. The deal adds further legitimacy to Iran new positioning given Vitol is the world's largest oil trader.

In another milestone for Iran this pre-finance deal is the first such major contract they have signed with a trading house since sanctions were lifted in early 2016. Privately held trading houses are more flexible and can negotiate deals quicker than listed firms given the myriad of US laws in particualar.

The Vitol Iranian deal was signed in October and will come into effect this month> Reuters quoted one of the sources of the terms;

"It is in euro...with the interest rate of around 8 percent in exchange for oil products," the source said.

Keep an eye out for traders looking at restarting the Caspian crude and product swaps with Iran but the process has been slow to pick up.

Source: Reuters

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