Petrochem Prices Slide With Oil

Petrochem Prices Slide With Oil
Petrochem Prices Slide With Oil

Prices of petrochemicals, especially mazut as a major export item have decreased due to falling oil prices, chairman of the Iranian Oil, Gas and Petrochemical Products Exporters' Association (OPEX) said, ISNA reported Friday.

Hassan Khosrojerdi said a ton of mazut which was previously priced at $600 has dropped to $465.

"The market is unstable due to the decline in crude prices with some buyers registering losses and consequently making purchases more cautiously," he noted.

China, UAE, Singapore, Vietnam, India, Pakistan and some North African countries are among the major customers of Iran's petroleum products.

Khosrojerdi stressed that the sanctions make it difficult for companies and governments to import Iranian products, as a result of which, some countries buy petrochemicals from Iran via third parties.

The US imposed tough sanctions on Iran to curb the country's nuclear program which it claims is geared to military use.

Iran insists it is peaceful. Iran and world powers were unable to reach a "comprehensive deal" by a November 24 deadline and extended the talks for seven more months.

Iran has also resumed limited export of liquefied petroleum gas (LPG) to Europe. However, it is a major LPG supplier to Asia.

LPG exports to Asian buyers edged over 300,000 tons per day in April, followed by record-breaking 319,000 tons in May, almost equaling the country's LPG exports before the introduction of new sanctions by the EU in July 2012.