• 4 minutes US-backed coup in Venezuela not so smooth
  • 7 minutes Why Trump will win the wall fight
  • 11 minutes Oil imports by countries
  • 13 minutes Maduro Asks OPEC For Help Against U.S. Sanctions
  • 2 hours Climate Change: A Summer of Storms and Smog Is Coming
  • 20 hours Tension On The Edge: Pakistan Urges U.N. To Intervene Over Kashmir Tension With India
  • 21 hours The Quick Read On MBS's Tour of Pakistan, India And China
  • 21 hours Iran Starts Gulf War Games, To Test Submarine-Launched Missiles
  • 20 hours BMW to add 2,000 more jobs at Dingolfing plant
  • 19 hours Teens For Climate: Swedish Student Leader Wins EU Pledge To Spend Billions On Climate
  • 22 hours Venezuela: Nicolas Maduro closes border with Brazil
  • 2 days Itt looks like natural gas may be at its lowest price ever.
  • 19 mins Washington Eyes Crackdown On OPEC
  • 23 hours Saudi A to Splash $100 Bln on India
  • 2 days Amazon’s Exit Could Scare Off Tech Companies From New York
  • 18 hours Indian Oil Signs First Annual Deal For U.S. OilIndian Oil Signs First Annual Deal For U.S. Oil
  • 1 day NEW FERUKA REFINERY
Amazon To Invest In Electric Pickups, SUVs

Amazon To Invest In Electric Pickups, SUVs

Amazon was inspired by electric…

The Oil Producer OPEC Is Overlooking

The Oil Producer OPEC Is Overlooking

While surging U.S. crude oil…

China Sticks With Iran For Oil Imports

Oil storage tanks

China has reassured Tehran that it will continue to import its crude, despite the United States’ withdrawal from the nuclear deal that will now be followed by sanctions targeting the Iranian oil industry among others.

A spokesman for the Foreign Ministry in Beijing, Geng Shuang, said, as quoted by Radio Free Europe, that China will "carry on the normal and transparent pragmatic cooperation with Iran on the basis of not violating our international obligation."

This makes China the latest to signal that it has no intention of stopping the flow of Iranian oil to its storage tanks and refineries. While this move, however, was to be expected since China is not dependent on the United States for its national security or economic growth, Japan and South Korea have also indicated they are already looking for ways to keep importing Iranian crude.

China is the biggest single buyer of Iranian crude, so its commitment to continued imports will likely curb the negative effect from any future U.S. sanctions on the Iranian oil industry and economy. This would undermine the effect of the sanctions on oil prices, which most analysts expect will become most markedly felt several months after the introduction of the sanctions.

Related: Oil Markets Tremble On Iran, Israel Flare-Up

Currently, analysts believe that the sanctions could take between 200,000 and up to a million bpd of Iranian crude off global markets, but it seems that every major importer of Iranian crude is planning to request a sanction waiver. This includes all of the U.S.’ top trading partners, including the European Union. If waivers are granted to all, the effect of the sanctions on oil will be negligible, and the need for Saudi Arabia to step in and raise its production may never arise.

However, if the United States refuses to grant waivers to its partners, things could go either way. According to some, such as the Daily Telegraph’s Ambrose Evans-Pritchard, everyone will fall in line behind the United States to avoid losing their access to American capital markets, despite talk about trying to enact a blocking regulation from 1996. If Iran’s clients decide to fight for their right to Iranian crude, international politics could become very messy.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • IR44 on May 15 2018 said:
    Iran will have fewer buyers so they will offer China and other Asian buyers a discount. Iran will export more oil than before to make up the revenue. Global supply will actually increase.

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News