A new crude oil pipeline from Abu Dhabi in the United Arab Emirates to carry up to 2.5 million barrels/day to the Gulf of Oman was scheduled to open in April. Now, the UAE says that pipeline operations will not begin until mid-2012l. The announcement threatens to force crude prices even higher.
Should Iran succeed in closing the Strait of Hormuz, through which about 15 million barrels/day of Middle East crude must travel, the new pipeline would help keep supplies moving, but certainly not take up the slack. Other pipelines in the region could transport another 2 million barrels/day once re-started.
Crude prices have not reacted to the news so far.
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