Iran’s Oil Production: Products, Types, and Pricing

Iran’s Oil Production: Products, Types, and Pricing at Bandar Abbas Port

Iran, one of the world's oldest oil producers, continues to play a pivotal role in global energy markets despite facing sanctions and geopolitical headwinds. At the heart of its export infrastructure lies Bandar Abbas Port, a vital gateway for crude oil and refined petroleum products. Let’s dive into the types of oil products Iran produces, their classifications, and the latest pricing trends at this strategic hub.

 Key Oil Products Exported from Iran

Iran’s oil production spans a wide range of products, each serving different industrial and energy needs. Here are the major categories:

Product NameTypeDescription

Iranian Light Crude

Crude Oil

Low sulfur content, preferred by Asian refineries

Iranian Heavy Crude

Crude Oil

Higher sulfur, heavier blend, used in complex refining processes

Condensate

Ultra-Light Crude

Byproduct of natural gas extraction, used in petrochemicals

LPG (Propane & Butane)

Liquefied Petroleum Gas

Used for heating, cooking, and as petrochemical feedstock

Fuel Oil (Mazut)

Refined Product

Heavy residual fuel, used in power generation and shipping

Gasoline

Refined Product

Standard motor fuel, exported in limited quantities

Naphtha

Petrochemical Feedstock

Used in plastics and chemical manufacturing

Bitumen (Asphalt)

Refined Product

Used in road construction and roofing

⚙️ Types of Oil Products

Iran’s oil exports can be broadly classified into:

Crude Oil: Unrefined petroleum, including light and heavy grades.

Condensates: Ultra-light hydrocarbons, often exported separately.

Refined Products: Produced in domestic refineries like those in Bandar Abbas and Abadan.

Petrochemical Feedstocks: Used in manufacturing plastics, fertilizers, and other chemicals.

 Pricing at Bandar Abbas Port (Excluding Shipping)

While exact prices fluctuate based on market conditions and sanctions-related discounts, here’s a snapshot of recent FOB (Free on Board) prices at Bandar Abbas Port:

ProductEstimated FOB Price (USD/ton or barrel)

Iranian Light Crude

$68–72 per barrel

Iranian Heavy Crude

$64–68 per barrel

Condensate

$70–75 per barrel

LPG (Propane & Butane)

$480–520 per ton

Fuel Oil (Mazut)

$320–360 per ton

Gasoline

$680–720 per ton

Naphtha

$600–640 per ton

Bitumen (Asphalt)

$280–310 per ton

Note: Prices are indicative and based on recent market estimates. They exclude shipping, insurance, and sanctions-related risk premiums.

 Strategic Importance of Bandar Abbas

Located on the Strait of Hormuz, Bandar Abbas handles nearly 80% of Iran’s container operations and a significant share of its oil exports. Despite recent disruptions—including explosions at Shahid Rajaee Port in April 2025—the port remains a linchpin in Iran’s energy trade2.

 Final Thoughts

Iran’s oil sector continues to adapt and evolve, leveraging its vast reserves and strategic location. For traders, refiners, and analysts, understanding the nuances of its product mix and pricing at Bandar Abbas is essential to navigating the complex energy landscape.