Mideast

Opec, which controls 40% of the world's oil supplies and is dominated by Mideast producers, believes that oil demand will increase in the year 2006 and that prices will average more than $50/bbl. The Mideast's cheap feedstocks, coupled with the region's relative proximity to China and India - the fastest growing markets, have given the Mideast a competitive edge in petrochemicals manufacture. Sabic, the 10th-largest petrochemicals producers worldwide and the most profitable company, has planned a massive investment program, which aims to double the company's sales to $30 million/year by the year 2015. the company is building two petrochemical complexes at Yanbu and Al Jubail, which are expected to complete in the year 2008. In Iran, state-owned National Petrochemical Co is investing $12 billion to double production capacity during the country's fourth five-year plan.