With China's assistance, Iran has resolved years of conflict with Saudi Arabia and the two sides have re-established diplomatic relations.
Moreover, under the sanctions imposed by the United States in the past few years, China still imports a large number of ** from Iran.
But I can't imagine that now Iran is "taking revenge", and the money sent to the door is not wanted, and it has to set up obstacles to the oil ** of both sides. If this game continues, who will benefit in the end? Who will be the loser?
According to a report by Saudi Arabia on January 6, oil cooperation between China and Iran has come to a standstill since December last year. In November last year, Iran suddenly notified China's ** merchants that it would increase the price of Iranian light ** exported to China by at least $5-8 per barrel.
According to the merchants, there will be an average discount of $13 on the light goods provided by Iran to our country throughout 2023, but after this price increase, the discount will be reduced to 4$5. For Iran to tear up the contract, the sudden price increase is obviously unacceptable.
Although China is the world's largest importer, our imports are very extensive, and there is in-depth cooperation with many oil-producing countries. But for Iran, we are Iran's largest oil exporter, under US sanctions, most countries have stopped their ** with Iran, if it loses Chinese customers, Iran intends to sell oil to **?
In addition to the price increase for exports to China, the Iranian side has seized part of the ** to prevent shipments. The data showed that oil deals between the two countries fell by 22 percent in December compared to October last year9%。
But before that, China's imports from Iran in 2023 have increased significantly. In the first 10 months of last year, China imported an average of 105 barrels of oil per day from Iran, and in the past three years, imports have more than tripled, according to Iranian reports. Imports also increased by 60% compared to the peak before the sanctions in 2017.
U.S. sanctions on Iran began in 2018, after which Iran's oil production was at a low ebb, however, in 2023, thanks to China's large imports, Iran's production recovered to 317 barrels per day, reaching pre-sanctions levels.
However, for the relevant parties in Iran, they may not see how much China's support will help Iran's oil exports and the country's economy as a whole. They only see that China needs to buy a large number of ** from Iran. Perhaps it is precisely because of this that Iran's oil ** merchants think that we cannot leave Iran's oil **, and the discount given to us before is too high, and the loss is too great, so they propose a price increase.
There is another factor, the United States ended sanctions against Venezuela in October last year, and the country's oil export restrictions were lifted, **substantially**. Iran believes its own sanctions may also be lifted.
But for us, even if Iran's *** is completely terminated, the impact is not great, and at present, China's state-owned oil refineries have basically stopped importing from Iran, and are mainly replaced by some smaller private refineries. Therefore, it has little impact on the whole.
Even for these private refineries, it doesn't have much impact, because there are so many options, for example, we can choose Russia and Venezuela to get a better deal**.
In fact, this move by Iran is very strange, because it seems that Iran itself is the only one who will lose in the end. Moreover, Iran's move may unexpectedly benefit the United States.
After the rapprochement between Iran and Saudi Arabia, a wave of reconciliation in the Middle East has been set off, which is a very big challenge for the United States.
But now that Iran has suddenly taken the initiative to put up obstacles in the way of oil exports, the United States must be secretly happy.
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