Page 14 - MEOG Week 48

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tokyo showed.
The figure accounts for 37.6 percent of
Japan’s total oil imports, which represented the highest amount from one country in the reported month. Arab oil accounted for 79.15 barrels or 92.4 percent of Japan’s petroleum needs in October.
Crude oil provides around 35 percent of energy needed to generate the third biggest economy in the world, according to the ministry.
Wam
Saudi Arabia raises light
crude prices to Asia to six-
year high
saudi Arabia raised on Monday its light crude prices for sales to Asia in January to the highest in six years, tracking gains in the Middle East crude benchmark and higher margins for light distillates last month.
tight supplies and increased demand for high-sulphur refining feedstock pushed the premium of the cash price for Middle East benchmark Dubai to swaps to the highest in six years in November.
In line with the gains, saudi Aramco raised the January official selling price (OsP) for
its Arab Light crude oil for Asian customers by 30 cents a barrel versus December to a premium of $3.70 per barrel to the Oman/ Dubai average, the highest since January 2014.
The January OsP for Arab Extra Light sold to Asia was also raised to a six-year high after Aramco increased it by 70 cents to a premium of $5.80 a barrel.
The grade was further boosted by a jump in refining margins for naphtha, a petrochemical feedstock, that hit a near two-year high.
Aramco cut the January OsPs for Arab Medium and Arab Heavy crude after high-
sulphur fuel oil (HsFO) margins plunged to record lows ahead of cleaner ship fuel rules set to start in January.
But the price cuts were less-than-expected because of higher demand for high-sulphur and heavier grades from new refineries in China, said two traders.
For customers in Northwest Europe, saudi Arabia reduced its January Arab Light OsP, setting it at a discount of $1.85 a barrel to ICE Brent, down $1.80 a barrel from December.
The OsP for Arab Light to the United states was unchanged in January versus December at a premium of $3.35 a barrel to the Argus sour Crude Index.
reuters
Gas
US sanctions could force Pakistan to ditch IP pipeline
Us sanctions could force Pakistan to ditch ‘Peace pipeline’ project with Iran Pakistan
has notified Iran that mounting Us economic pressure makes it “impossible” to proceed with the massive Iran-Pakistan gas pipeline (IP) project, also known as the ‘Peace pipeline’.
“We cannot risk Us sanctions by going ahead with the [IP] project as America has clearly said that anybody who will work with Iran will also be sanctioned,” Mobin saulat, the managing director of Inter state Gas systems, which works under the auspices of the Pakistani government, Arab News.
Islamabad recently informed tehran in writing about the hurdle to implementing the pipeline project, according to the official. He noted that if the restrictions against Iran are lifted, Pakistan will be eager to go ahead with it. The same position was earlier by Pakistani Prime Minister Imran Khan.
The project, which has been under discussion since 1994, was initially meant to deliver natural gas from Iran’s giant south Pars field to Pakistan and India. New Delhi quit it in 2009, citing the costs and security concerns.
The Us vocally opposed the $7 billion project long ago, even before the 2015 nuclear deal, from which Washington has already withdrawn. It said that the construction of the pipeline could violate sanctions imposed on Iran over alleged nuclear activities, despite Iran denying the claims and that natural gas cannot be used for making atomic bombs.
Iran has already slammed Pakistan
for failing to adhere to the bilateral deal
and delays in laying down the pipeline. In February, the Islamic Republic threatened to take its project partner to the international court of arbitration over the lack of progress on construction. Islamabad has at least two months to respond to Iran on the matter, according to Inter state Gas systems.
“We have time till August this year to legally respond to Iran’s legal notice and settle the issue through negotiations,” saulat said.
The news comes just days after the trump administration imposed new sanctions targeting anyone who fails to wind down transactions related to Iran’s metal sector. This is in addition to the tough restrictions on energy exports, which the Us seeks to cut to zero.
On sunday, Iranian President Hassan Rouhani called for unity as the country faces “unprecedented” pressure from its “enemies.” He compared the current situation with the conditions during the 1980s war with Iraq, saying that it is not clear if they are “better or worse,” but back then Iran had no problems with its banks, oil sales, or imports and exports, except for arms purchases.
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Week 48 04•December•2019