EMEA News
Return of Iranian Product Could Improve Bunker Quality
The gradual lifting of Western sanctions against Iran could improve the quality of bunker fuel available in the Middle East, United Arab Emirates (UAE) newspaper The National reports.
"Iran produces good fuel because they have simple refineries," said Gunnar Kjeldsen, regional manager of DNV Petroleum Services in Fujairah.
"The residual fuel quality in this region should improve if the sanctions are lifted and bunker fuel is again sourced from Iran."
Kjeldsen said the sanctions, along with other factors, have hurt the quality of bunker fuel in the region in recent years.
But Dubai fuel oil trader Greg Seremetis said the lifting of sanctions could pose a threat to local markets.
"If the Iranian tankers come to the market, it will open a lot of business, but it will also devastate the tanker market dramatically due to the increase in supply," he said.
Trade between Iran and the UAE is resuming only gradually as the U.S. continues to enforce some sanctions imposed on Iran over its nuclear programmes.
Trade between Dubai and Iran dropped from Dh36 billion ($9.8 billion) in 2011 to Dh25 billion ($6.8 billion) in 2012.
As part of a deal that began January 20, some measures penalising Iran were lifted immediately, while others are being rolled back gradually over a six-month period.
