Proposed bans on Iranian crude are likely to have
significant impacts on global oil markets if followed through,
according to a new poll of Hydrocarbon Processing
hundreds of votes cast, 61% say Iran supply is needed to
fill requirements. Just 39% believe the oil can be readily
replaced from other regions.
The US is set to ban all oil trades with Iran's central
bank, beginning in June. The European Union is then set to
embargo all Iranian oil from July 1.
Many major countries, including Japan and Spain, have
already begun reducing their Iranian imports and
switching to Saudi crude.
The market tension has contributed to rising crude oil
prices in recent weeks.
Peter Oosterveer, president of the energy and chemicals
(E&C) segment at Fluor, recently returned from a trip to
the Middle East.
Despite increasing Iran turmoil and sanctions, project activity in the region and
elsewhere has not been significantly impacted, he
Theres the belief that cooler heads will ultimately
prevail, said Oosterveer. No one is extremely
worried, but there is concern.
Its hard to replace that supply if push came to
shove, but its not impossible, he continued.
It can be done, though.
I think Iran needs the rest of the world, and
particularly the revenue from energy, more so than the rest of
the world needs Iran.
To see more details on this poll
as well as access prior Hydrocarbon Processing poll
results, click here.
(Editors note: Polls are where we at Hydrocarbon
Processing gather industry sentiment on significant issues of
the day. Visit the HP home page to weigh in on our latest poll regarding
early 2012 business conditions.)