Growth in Middle East oil markets continues in face of political uncertainties

The Middle East, despite many political events, will continue to demand more refined products and produce these products with more-stringent specifications. Armed conflict, continued violence, and a transition in Iraqi leadership have combined to make events in the Middle East more unpredictable than normal.Total oil product demand in the Middle East will increase around 124,000 b/d/year until 2010. The demand pattern has shifted slightly away from fuel oil and jet fuel in favor of gasoline. Iranian gasoline demand, in particular, has grown rapidly.Certain refining projects, such as the quality-related expansions in Iraq, will be delayed. Iraqi refining capacity will not increase in the n...

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