Post by demos on Feb 10, 2021 16:01:34 GMT
China is still brimming with Iranian oil
Even with occasionally reduced oil imports, Beijing has been Tehran’s lifeline to circumvent oil sanctions for years, providing a stable source of cash while nearly all countries dialed down their reliance on energy supplies from Iran. This was crucial when Iran’s oil output halved to just 2 million barrels per day (bpd) in 2020. Now, the crude-based relationship between Iran and China is stronger than ever, particularly since China is on overdrive to catch up with the United States economically, fueled by a steady stream of oil delivered from all corners of the world, including Iran...
In December 2020, China imported 9.06 million barrels per day, a dip from November’s 11.04 million bpd—but only because refiners ran out of import quotas toward the end of the year. China is still thirsty for oil. Fresh quotas in early 2021 are 18 percent higher than a year ago.
This coincides with Iranian deputy oil minister Amir Hossein Zamaninia’s promise that Iran will raise its oil production to pre-sanctions levels by March to hit an output of 3.9-4 million bpd. The decision is likely based on expectations that US President Joe Biden will restore the Barack Obama-era nuclear deal that the Donald Trump administration withdrew from in 2018.
As long as China’s petroyuan provides a means to avoid US sanctions, Iran will keep loading tankers with crude and sending them eastward. Chinese refineries and petrochemical processors are piping in crude from all sources, including Iran.
Even with occasionally reduced oil imports, Beijing has been Tehran’s lifeline to circumvent oil sanctions for years, providing a stable source of cash while nearly all countries dialed down their reliance on energy supplies from Iran. This was crucial when Iran’s oil output halved to just 2 million barrels per day (bpd) in 2020. Now, the crude-based relationship between Iran and China is stronger than ever, particularly since China is on overdrive to catch up with the United States economically, fueled by a steady stream of oil delivered from all corners of the world, including Iran...
In December 2020, China imported 9.06 million barrels per day, a dip from November’s 11.04 million bpd—but only because refiners ran out of import quotas toward the end of the year. China is still thirsty for oil. Fresh quotas in early 2021 are 18 percent higher than a year ago.
This coincides with Iranian deputy oil minister Amir Hossein Zamaninia’s promise that Iran will raise its oil production to pre-sanctions levels by March to hit an output of 3.9-4 million bpd. The decision is likely based on expectations that US President Joe Biden will restore the Barack Obama-era nuclear deal that the Donald Trump administration withdrew from in 2018.
As long as China’s petroyuan provides a means to avoid US sanctions, Iran will keep loading tankers with crude and sending them eastward. Chinese refineries and petrochemical processors are piping in crude from all sources, including Iran.
