Export of oil, gas and petrochemicals, which were suspended temporarily in March due to outbreak of the novel coronavirus, has resumed as before the respiratory illness struck, a spokesperson for the Iranian Oil, Gas and Petrochemical Products Exporters' Union said.
Preventive measures to combat the contagious virus halted the export of products including diesel and mazut. However, it is underway now albeit with lower prices, ILNA reported Hamid Hosseini as saying.
Regarding the negative impact of the pandemic on the key energy market, Hosseini said spread of the virus has shut down some oil and petrochemical plants globally and hammered prices of oil products as demand falls to historic lows.
As many countries impose mass quarantines and many businesses are forced to down shutters to slow the virus spread, consumption of oil, gas and petrochemicals such as gasoline has fallen in ways unseen in recent history, Hosseini added.
The number of confirmed coronavirus cases worldwide is nearing 2 million and the death toll is close to 120,000.
Iran had confirmed 75,000 cases of infection, with over 4,700 dead by Tuesday afternoon.
Before the new disease hit Iran in late February, export of petrochemicals were up 5% in the first ten months of last year (March 2019-Feb 2020) compared to the same period in the previous year.
The increase was largely thanks to new petrochemical units that opened across the country.
Export of non-oil products from the Customs Administration of Pars Special Economic Energy Zone was increasing despite the tough US restrictions.
The pandemic has turned most economies upside down. Iran’s energy market has been no exception. Add to this obstructions created by the US hostility and unilateral economic sanctions
Over $500 million worth of non-oil products were exported last November, up by 39% in volume and 5% growth in value compared to the same period the year before.
In addition, there are stringent restrictions on shipping and insuring ships and oil tankers in Iran, but these US penalties did not prevent the growth of non-oil exports led by petrochemicals.
Exports included methanol, propane, butane, lightweight and heavy polyethylene, ammonia, sulfur and styrene among others.
China, the UAE, South Korea, India, Japan, Hong Kong, Indonesia, Turkey, Iraq, Egypt and Kuwait were among the main export destinations.
Global Market
While the restrictions did not affect Iran’s export of petrochemicals and other oil products as some had expected, the corona pandemic has turned most economies upside down. Iran’s energy market has been no exception. Add to this the obstructions created by the US hostility and economic sanctions.
Within the petrochemical industry context, it is being severely affected due to the increasing market uncertainties, price volatility and declining consumption in many of its key segments.
The most visible impact is seen in China where economic activity has declined sharply and is forecast to remain low over the next few months. The effect of China’s economic slowdown is impacting economies round the globe, albeit to varying degrees.
Global petrochemical markets are in a state of shock and high uncertainty. Feedstock prices have declined sharply while chemical and polymer prices are expected to do the same.
