Business

Undeterred: China defies US pressure, buys Iranian oil

Sources told Reuters Chinese buyers of Iranian oil were beginning to shift their cargoes to vessels

Reuters August 22, 2018

The company’s first discovery in the area covered by the Kotri exploration licence was in Kotri X-1 well in 2016, which only provided initial gas flow of 3.4 mmcfd. PHOTO:FILE

BEIJING/ SINGAPORE: China, seeking to skirt US sanctions, will use oil tankers from Iran for its purchases of that country’s crude, throwing Tehran a lifeline while European companies such as France’s Total are walking away due to fear of reprisals from Washington. The United States is trying to halt Iranian oil exports in an effort to force Tehran to negotiate a new nuclear agreement and to curb its influence in the Middle East. China, which has cut imports of US crude amid a trade war with Washington, has said it opposes unilateral sanctions and defended its commercial ties with Iran. Sources told Reuters Chinese buyers of Iranian oil were beginning to shift their cargoes to vessels owned by National Iranian Tanker Co (NITC) for nearly all their imports. The shift demonstrates that China, Iran’s biggest oil customer, wants to keep buying Iranian crude despite the sanctions.

Published in The Express Tribune, August 22^nd, 2018.

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COMMENTS (1)

dubious | 6 years ago | Reply Sounds great - author left out the fact that the entire Iranian fleet can only supply a tiny fraction of China's previous demand. The harsh reality is that the USA economic clout is sufficient to make China comply even reluctantly.

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