Better Iranian than Russian: Tehran sends huge cargo of oil to China, with no US opposition

China will soon receive nearly two million barrels of Iranian oil, according to oil tanker movement analysis data provided by Vortexa and reported by Reuters . All after having preferred, for a period of time, Russian crude, however internationally sanctioned.

The cargo, which will be unloaded in southern China later this week to be pumped into government reserves, is the third large cargo to have come from Iran since December.

The cargo is reportedly aboard an oil tanker owned by the National Iranian Tanker Company, indicating it will be officially registered as a Chinese purchase of Iranian crude oil.

As Reuters notes, China does not officially record all of its crude oil imports from Iran, and masks some cargoes as coming from Oman or Iraq. Reuters estimates that unofficial imports of Iranian crude oil into China account for about 7% of the Chinese total, a huge gray area.

According to the Wall Street Journal, Iranian oil exports rose to 870,000 barrels per day in the first three months of this year, which represents a 30% increase over total exports in 2021. China in this case records this oil . with its real provenance because it knows the US will not react, as Russia is now seen as a greater threat.

While Iran may be optimistic following Washington's move to loosen some sanctions against Venezuela, so far there is no indication of progress in the nuclear deal with Iran.

Washington said on Tuesday that a deal was "far from certain" and that the onus rested entirely on Tehran, which continues to demand terms the US will not accept. But this is not in contrast with less control of the cargoes that Iran sends to third countries, such as China and India, which replace Russian production. Among other things, China has a long-term agreement with Tehran that allows it to buy oil at discounted prices.

According to Seatrade Maritime , the NITC, the Iranian state-owned shipping company, recently announced a new construction of tankers and repairs to its old fleet, thus preparing to ship the oil as if there were no sanctions. Maybe these will officially remain, but, simply, the "Policeman of the world" will turn his head elsewhere.

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This is a machine translation of a post published on Scenari Economici at the URL on Thu, 19 May 2022 09:00:05 +0000.