Iran is constructing a $1.8 billion oil pipeline to its pork of the Jask outside the mouth of the Gulf, according to the country’s oil minister. The construction is part of plans to protect its exports against potential problems in the region and to improve shipments of Caspian oil.
Outside the Strait of Hormuz, Iran has been planning to set up the terminal since at least 2012.
The vital Gulf oil shipping route threatened to be blocked by Tehran during its impasse with the United States. Also, Washington withdrew from Iran’s 2015 nuclear deal with world powers and reimposed sanctions last year. Also, it includes Tehran’s vital oil exports.
Ministry of Oil, Bijan Zanganeh says the project would transform the region. Various oil storage facilities, export jetties, wave breakers, and single buoy mooring systems will build in the Jask.
Moreover, the minister added that two refineries and petrochemical facilities are also part of the plan.
Zanganeh also tweeted $700 million will spent on developing the Jask port.
Besides, Iranian crude exports dropped in June to 300,000 barrels per day or less. The drop is after Washington tightened sanctions on the country’s oil exports in May. Also, in April 2018 exports stood at more than 2.5 million BPD.
Geopolitical tensions of Iran and Saudi Arabia might be the most significant issue facing the Middle East. Iran’s oil minister insisted he has a good rapport with his Saudi Arabian counterpart.
Also, Wednesday, Zanganeh says in a conference that the new energy minister is his friend for over 22 years.
Iran’s Oil Minister Ignored Tensions Over Aramco Attack
Iran and Saudi Arabia tensions have long been tensed because of the rival religious power struggle in the region.
OPEC’s policy still not acknowledged by Iran and Saudi Arabia. Also, Saudi Arabia cuts to OPEC production, but Iran, under U.S. sanctions, did not want to cut output. It is exempt from the output cuts agreed by OPEC and non-OPEC producers.
Furthermore, Zanganeh says despite the up and down political relationship between Iran and Saudi Arabia, they had been friends. Also, he hopes to stay friends with him in the future.
Yemen’s Houthi rebels claimed liability for the attack in Saudi Arabian oil facilities in September. Saudi Arabia and the U.S. implied that the Houthi’s ally, Iran, had a role in Saudi Aramco’s Abqaiq and Khurais oil facility. Contrarily, Iran denied the accusation.
Zanganeh believes that all Muslim countries and neighboring countries should have a peaceful environment. Also, he believes that enemies are in another country out of their area.
Moreover, the attack does not affect Iran’s production and export, but issues increase tension in the region.
All the countries all over the world believe that unilateralism doesn’t work. Also, their increase of pressure on Iran is not the solution for a stable and peaceful environment and security of supply of oil.
On Tuesday, oil prices slipped after weak U.S. manufacturing activity data. It put downward pressure on crude demand outlook. Also, on Wednesday, Brent crude was at $58.69 while WTI was at $53.75.
- Trading Instrument