- The UAE will complete construction of its second major oil pipeline by 2027.
- A second oil pipeline bypassing the Strait of Hormuz will double capacity to 3,6 million barrels per day.
- The stabilization of energy markets will normalize the situation on the crypto market.
The United Arab Emirates (UAE) will accelerate construction of an oil pipeline bypassing the Strait of Hormuz, which is blocked by Iranian authorities. This will allow the country to double its export capacity from 1,8 million barrels per day to approximately 3,6 million barrels per day.
New pipeline held parallel to the existing West-East pipeline and will transport oil from the Emirates’ onshore fields to the port of Fujairah in the Gulf of Oman.
Construction of the oil pipeline is accelerating and is scheduled for completion in 2027, as the blockage of the Strait of Hormuz has hampered tanker transit. This has had a significant impact on the economies of the Persian Gulf countries.
Once the new bypass system is in place, the UAE will be able to seamlessly increase oil shipments through the Gulf of Oman terminal. This will allow Abu Dhabi to produce more oil and ship it directly to customers around the world.
While the UAE is constructing the new facility, Saudi Arabia already has an operational East-West pipeline system capable of transporting approximately 5-7 million barrels of oil per day to Yanbu. This will increase the total capacity of routes bypassing the Strait of Hormuz to 8-10 million barrels per day.
In late April Happy Coin News ReportedThe UAE is leaving OPEC after 60 years of membership. The UAE, the third-largest oil producer in the organization, is expected to produce more oil than future production quotas allow after the conflict ends and normal trade through the Strait of Hormuz resumes.
The normalization of the situation in energy markets will contribute to the stabilization of the cryptocurrency market as a whole.
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