In an attempt to increase pressure on Iran in order to push through a nuclear deal with Iran, the U.S. is considering cracking down on Iranian oil exports to China.
Chart of the Week
- The government of the United States is mulling a ban on Chinese imports of Iranian crude as it becomes increasingly clear that reaching a deal with Iran before the inauguration of its new government is unlikely.
- The oil markets see the U.S. somewhat unlikely to antagonize China further, yet Washington would be inclined to highlight that it has other options to opt for should the talks fail altogether.
- Verifiable Chinese imports of Iranian crude amounted to some 250kbpd over the course of H1-2021 according to vessel-tracking firm Kpler, a 130% increase year-on-year, largely coming on the back of Biden-era softening of rhetoric towards China.
- A significant volume of Iranian exports, however, is routinely trans-shipped in the region of the Malacca Straits, rendering the deciphering of their final destination all but impossible.
- Brazil is expected to double its oil production between now and 2030, promoting its image as a safe-haven investment for oil and gas projects amidst shrinking international opportunities, buoying market sentiment for Petrobras (NYSE:PBR).
- The Italian oil major Eni (NYSE:E) has signed an agreement with Azora Capital to buy 1.2GW of solar and wind capacity in Spain, boosting its renewables footprint in the Mediterranean. 230MW worth of solar assets are already in operation, the rest comes from solar projects already being developed.
- ExxonMobil (NYSE:XOM) shut down its 120kbpd Slagen Refinery in Norway last month, becoming the fifth European refinery to see its operations halted for good because of pandemics-triggered ramifications.
Tuesday, July 27, 2021
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Greenpeace Seeks to Derail Latest North Sea Project. Greenpeace is seeking to take the UK government in court over the forthcoming 150 MMbbls Cambo project, as Britain prepares to host the COP26 Glasgow conference in November. Cambo, backed by Shell (NYSE: RDS.A) and located in harsh seas amidst complex geology, wields heavy oil of some 23-25° API and is expected to come onstream by 2025 – the government approval is expected to take place within several weeks.
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By Josh Owens for Oilprice.com
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