China could use Iranian oil as a weapon in the trade war against the United States

Globallookpress

Under the title above, Sergei Manukov wrote in Expert Online that China continues to secretly buy Iranian oil and its ability to cause the collapse of oil prices.

Last week, the Zero Hedge blog drew attention to two news likely to affect oil prices. This concerns Iran and Iranian oil.

According to Reuters, China continued to buy oil in Tehran in July, but in much smaller quantities than last year.

From now on, all the information on Iranian oil is muted. Therefore, China's oil import data vary widely. According to oil tracing companies, Beijing would have bought 4 to 11 million barrels of crude oil, or 142-360,000 barrels a day, from Iran in July. If we take the upper limit, Iran's purchases of Iranian oil are almost halved compared to July 2018.

The second news of interest to Zero Hedge is CNBC's report that China's increased purchases of Iranian oil will drive down prices for Brent and WTI. Bank of America badysts have warned that by increasing its Iranian oil imports, China could cause the collapse of the price of the black gold to 30 dollars a barrel.

Bank of America Merrill Lynch also warned of a serious drop in oil prices if Beijing continued to buy oil in Tehran. This means that Beijing could significantly reduce the impact of US sanctions on Iran.

Today, they say, in Washington, between 50 and 70 percent of Iran's oil exports go to China and the other 30 to Syria.

However, Chinese imports of crude oil from Iran have declined this summer. For example, it fell by 60% in June compared to June 2018. But Beijing can make the oil markets more volatile if it decides to double the purchase of Iranian oil, which will cause new damage for the United States .

The article only expresses the opinion of the newspaper

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