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China’s Oil Imports from Iran go back to Normal

in International Business

China’s Oil Imports from Iran go back to Normal

China’s imports of crude oil from Iran surge in May after a payment dispute is resolved between the two countries.

Beijing saw a 35% jump on oil import from Iran from the previous month.

This surge comes despite the sanctions that the US had imposed against Iran and asked countries to cut oil imports from Iran and threatened them that they would be cut off of financial institutions for doing business with Iran’s energy sector.

Beijing is the biggest buyer of Iranian crude oil and has called the country’s oil imports from Iran reasonable, as the imports are needed for economic development.

China’s economic growth in recent years has seen a rise in demand for energy resources, turning it into one of the biggest consumers of crude oil in the world.

Imports from Iran are key part of Beijing’s overall fuel imports.

During the first quarter of the year China’s imports from Tehran had fallen significantly due to the ongoing dispute over payments and low seasonal demand.

Analysts say that the decline in oil imports from Tehran was because of the reasons above and because of the sanctions imposed by the US.

Tony Regan of consultancy firm TriZen said that the US may grant China some kind of exemption from the sanctions.

“The US may not want to be seen as the one challenging China on this issue,” he said.



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