• 2 minutes Oil Price Could Fall To $30 If Global Deal Not Extended
  • 5 minutes Middle East on brink: Oil tankers attacked off Oman
  • 8 minutes CNN:America's oil boom will break more records this year. OPEC is stuck in retreat
  • 2 hours Iran downs US drone. No military response . . Just Completely Destroy their Economy. Can Senator Kerry be tried for aiding enemy ?
  • 13 mins California and Oil
  • 3 hours The Inconvenient Truth Of Electric Cars
  • 7 hours The Plastics Problem
  • 3 hours Win Against Tyranny: Turkey's Opposition Strikes Blow To Erdogan With Istanbul Mayoral Win
  • 3 hours Ireland To Ban New Petrol And Diesel Vehicles From 2030
  • 12 hours Solar Panels at 26 cents per watt
  • 8 hours Hydrogen FTW... Some Day
  • 2 hours Green vs. Coal: Bavaria Seeks Fast-Track German Coal Exit in Snub to Merkel Plan
  • 18 hours NATO Article 5: Attack on one member is attack on all. Members all must come to defense . . . NOT facilitate financial transactions to circumvent and foil US Sanctions. Somebody please tell Angela.
  • 17 hours Summit in Pyongyang: China's Xi Says World Hopes North Korea-U.S. Talks Can Succeed
  • 14 hours What's more Important Iran Nuke Deal or Strong China Trade Deal. Hypothetically, If China offered Trump North Korean and Iran deals in exchange for concessions on trade deal should he take it ?
  • 3 hours Here We Go: New York Lawmakers Pass Aggressive Law To Fight Climate Change
  • 18 hours Huge UK Gas Discovery

Breaking News:

Oil Pipelines Sabotaged In Syria

IHS Markit: China Is Iran’s Last Hope To Continue Exporting Oil

Iran tanker

Iran’s oil exports will greatly depend on how China will proceed with its crude oil imports from the Islamic Republic, if at all, after the U.S. removed all sanction waivers for Iranian oil customers, IHS Markit said in an analysis on Tuesday.

Despite the U.S. push to drive Iranian oil exports to zero, China is not expected to totally cut off its crude imports from Iran, according to Fotios Katsoulas, Liquid Bulk Principal Analyst, Maritime & Trade at IHS Markit.

Still, Chinese oil imports from Iran will likely be very low for a long period of time going forward, Katsoulas said.

China’s total crude oil imports dropped in May from a monthly record in April, as Chinese refiners drastically reduced Iranian oil imports after the end of the U.S. waivers and as some state refineries were offline for planned maintenance.

Seng Yick Tee, an analyst with Beijing-based consultancy SIA Energy, told Reuters that the key reason for the lower Chinese crude oil imports in May was the sharp drop in imports from Iran as the U.S. ended all sanction waivers for Iranian customers on May 2, including for Iran’s biggest oil buyer China.

China has been Iran’s ninth biggest oil supplier this year, down from the seventh spot last year, IHS Markit has estimated.

China has criticized the U.S. decision to end the sanction waivers and some Chinese refiners may continue to buy Iranian oil as the U.S.-China trade war deteriorates and Beijing could simply brush off the U.S. sanctions on Iranian oil.

“However, this behaviour will not be the typical one to observe across China, as several companies have already realised how inconvenient it would be to continue purchasing from Iran,” IHS Markit’s Katsoulas said.

From Iran’s point of view, China could be the last hope of keeping Iran’s oil production and exports from total collapse, the analyst said, noting that the rest of the world—including Iran’s second-largest buyer until recently, India—have stopped oil trade flows from the Islamic Republic.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

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