Iran raises oil prices for China and reduces supplies
Economy
The decision hampers trade between the two countries as about 10 per cent of Beijing's oil consumption comes from Tehran, Reuters reported.
Iranian suppliers and Chinese buyers face an impasse whose outcome remains unclear, according to a Chinese company that mediates oil purchases.
Kpler estimated that China bought a record 1.53 million barrels of oil per day in October, already down to 1.22 million barrels in November and down to 1.18 million bpd in December. Over the past week, Iran's floating storage stocks rose by 2 million barrels to 15.5 million barrels.
An oil buyer from China's Shandong province said the following: "Buyers are still trying to find a solution as the new prices are too high. But since they have limited choices and the Iranian side is very tough, the scope for price negotiations is difficult and not in favour of Chinese buyers." Oil supplies from Iran to China have therefore been reduced.
Kpler estimated that China bought a record 1.53 million barrels of oil per day in October, already down to 1.22 million barrels in November and down to 1.18 million bpd in December. Over the past week, Iran's floating storage stocks rose by 2 million barrels to 15.5 million barrels.
An oil buyer from China's Shandong province said the following: "Buyers are still trying to find a solution as the new prices are too high. But since they have limited choices and the Iranian side is very tough, the scope for price negotiations is difficult and not in favour of Chinese buyers." Oil supplies from Iran to China have therefore been reduced.
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