Vijay Valecha , Special to Khaleej Times 28, 2021
The UAE’s oil exports won't be impacted by the closure of Suez Canal as most of the crude is now exported to Asian countries, says analyst.
The UAE can also channel its oil exports through the Sumed pipeline if the ongoing crisis prolongs.
A giant Japanese container ship has blocked the Suez Canal after it was blown off course by high ends, causing immense challenges to global exports of goods, crude oil and other commodities.
Around 19,000 vessels passed through the 193-kilometre (km) maritime shortcut last year, carrying approximately 12 per cent of global trade by volume and 10 per cent of crude oil.
Currently, more than 320 ships are waiting to pass through the Suez Canal. By circumventing, the canal could cost $300,000 more per ship.
On Friday, Reuters had reported that Abu Dhabi National Oil Company (Adnoc) has deepened crude oil supply cuts to Asian customers in June to 10-15 per cent from 5-15 per cent in May, a week ahead of an Organization of the Petroleum Exporting Countries (Opec+) meeting.
The UAE is the third biggest oil producer in Opec behind Saudi Arabia and Iraq, pumping between 2.5 million (m) and 3m barrels per day.
Source: Khaleej Times