POLL FINDINGS: Iran crude bans likely to make major market impact
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 readers.
With 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 said.
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.)