Reduction in Oil Import by Pakistan

Reduction in Oil Import by Pakistan 

The decrease in import of oil by Pakistan has been observed last month. Even the biggest oil company of Pakistan, Pakistan State Oil (PSO) has reduced the import of oil to the lowest volume of 780,000 tonnes, which is required for the period of three-months.

Though, import of less volume of oil is for short term and it will pick up the volume by the next three-month cycle.

In view of a Middle-East trader, “The lower demand is a result of surplus supplies from the previous tender cycle, when it bought nearly 1.5 million tonnes, which was a result of the heavy flooding in the third quarter."

In continuation of the above said statement, he further added, "The floods basically disrupted the land transport system and there were a lot of difficulties in moving the oil from the ports in the south to the power plants in the north. Plus, the heavier
rains also resulted in more hydropower generation."

The oil traders hope that the demand for the import of oil will be back to normal amount of 600,000 tonnes per month as the next cycle will begin.

They said that the power production is not enough here and there is not enough electricity generation which is needed to meet the demand of growing population. This results in frequent black-outs of about 10 hours in many areas of Pakistan even today.

The volume that was imported in October is about 382,500 tonnes. The 80 per cent of this total volume was high-sulphur cargoes and remaining 20 per cent was low sulphur lots.

Keeping in view the lower demand, the PSO bought 65,000 tonnes of high-sulphur cargoes for the three month cycle from November-January. It was the lowest volume PSO purchased since January-March.

Most of the trading of fuel is done by Middle-East traders because of the freight advantage. The freight advantage is enjoyed by the Middle-east traders as compared to the East Asian players because of nearness of the country.

Hence, all the oil traders of Middle-East are hopeful that soon this lessen volume of import of this specific cycle will increase to a normal volume.

Short URL: https://www.newspakistan.pk/?p=4248

Posted by Mursil Mehmood Butt on Nov 21 2011. Filed under Latest News, Middle East, Pakistan. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry