Page 12 - DMEA Week 31

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conference on the occasion of Journalists Day in Tehran.
“We cannot reveal what we are doing
to counter sanctions, but we can say with certainty that the sanctions haven’t stopped the wheel of production and exports of petrochemicals in the country, and the united States have failed to achieve that goal,” he said.
e o cial also noted that the PGPIC holding currently has $10-billion worth of petrochemical projects underway, adding this is an indication that the PGPIC performance has not also been impacted in the least.
e o cial further stated that most of
the foreign currency which is injected into
the country’s domestic Forex Management Integrated System (locally known as NIMA) is being supplied by the country’s petrochemical sector.
As the united States sanctioned PGPIC on June 7, many analysts and o cials believe them to have no signi cant impact on the country’s economy in a broad sense.
Washington imposed new sanctions on Iran’s largest petrochemical holding group, aiming to dry up yet another source of Iran’s revenues in order to boost pressure on the country’s economy.
e u.S. Treasury said in a statement that it had sanctioned the PGPIC holding group’s network of 39 subsidiary petrochemical companies and foreign-based sales agents.
However, experts and analysts believe this new sanctions to be more symbolic than practical.
Earlier in April, General Secretary of Iran’s Association of Petrochemical Industry Corporation (APIC) had said u.S. sanctions are not going to have any signi cant impact on Iran’s petrochemical exports.
“ e mechanisms of petrochemical exports di er signi cantly from oil exports and therefore u.S. sanctions will have no
impact on the production and export of petrochemicals.” Ahmad Mahdavi Abhari said.
Petrochemical industry is one of the most important pillars of Iran’s economy and one of the main suppliers of foreign currency especially euro for the country.
According to Iranian Oil Minister bijan Namdar Zanganeh, the country is currently producing 63 million tons of petrochemical products annually and with the new projects going on stream the number is expected to jump to 66 million tons further cementing the Islamic country’s stance as a major petrochemical supplier to the world markets. tehRan times
teRminals & shipping
PACCAR to pay $1.7mn for
possible Iran sanctions
evasion
Long-haul truck manufacturer PACCAR Inc. will pay more than $1.7 million to settle allegations the company may have evaded sanctions against Iran.
by agreeing to the ne, PACCAR has terminated its civil liability for 63 apparent violations of the u.S. sanctions regime against Iran by its foreign subsidiary, Treasury’s O ce of Foreign Assets Control (OFAC) said in an Aug. 6 statement.
PACCAR’s Netherlands-based subsidiary, DAF Trucks N.V., allegedly sold or supplied 63 trucks worth about $5.4 million to European customers that “it knew or had reason to know were ultimately intended for buyers in Iran,” according to OFAC. BloomBeRg
Glut persists as buyers
shun 20 cargoes of Nigerian
crude
According to crude loading schedule for September sighted by our correspondent at the weekend, this is as gluts rocking the global oil market takes toll on Africa’s biggest oil exporter.
Nigeria depends largely on proceeds from crude to service over 85 per cent of her budget.
As demand for the country’s crude grades remains elusive, the schedule shows that the crude di erentials for the Africa’s biggest economy su ered a slide.
“Di erentials for Nigerian crude oil continued to slide as lacklustre re ning margins and a plethora of competing grades prompted sellers to lower o ers in the absence of demand,” a document of Reuters on the loading schedule stated.
up to 20 cargoes remain for August loading amid a glut of light sweet crude from the united States and the North Sea – where di erentials are also falling.
“ e backlog is putting pressure on
prices for September loading, especially for main grades – bonny Light, Qua Iboe and Forcados, which are all being o ered at among the lowest rates in 2019,” the report noted.
Mercuria is attempting to sell a cargo of August loading Forcados a er having sold a cargo of mid-month loading Jones Creek.
Di erentials for August loading bonny Light and Qua Iboe crude were at well below a $2.00 premium to dated brent.
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Week 31 08•August•2019