UAE Says It Can Export Oil if Iran Closes Strait of Hormuz
Even though Iran hasn’t threatened to close the Strait of Hormuz for at least a few days now, at least one Middle East oil exporter is working on contingency plans. A Dubai official has said that the United Arab Emirates…
Even though Iran hasn’t threatened to close the Strait of Hormuz for at least a few days now, at least one Middle East oil exporter is working on contingency plans. A Dubai official has said that the United Arab Emirates (UAE) can bypass the Strait and get crude directly to the Gulf of Oman.
That’s brave talk considering that a new crude pipeline capable of transporting 1.8 million barrels/day through Abu Dhabi has been delayed until mid-year and that currently idled pipelines have a capacity of around 2 million barrels/day. Nearly 20% of the world’s supply of crude, about 17 million barrels/day, now pass through the Strait.
Of course the UAE could have another card to play, but it had better be a big trump card.
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Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.
