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Trump’s China-Iran Oil Stance a Status Quo for Market: Sen

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Bloomberg Jun 25 21:19 · 20.7k Views

Amrita Sen, director of research at Energy Aspects, discusses the market implications of President Donald Trump giving China the green light to carry on buying oil from Iran.

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Transcript

  • 00:00 I'm Rita.
  • 00:00 I want to get to this this line that's coming for the president.
  • 00:03 Can you help me answer this?
  • 00:04 When did China stop
  • 00:05 buying Iranian crude?
  • 00:10 I think that's a question you might have to ask him.
  • 00:12 But basically, there's been a lot of confusion since that statement that
  • 00:17 to your point, China hasn't stopped buying Iranian crude.
  • 00:19 China still buying
  • 00:21 1.5 to 1.7 million barrels per day of Iranian crude.
  • 00:25 There was maximum pressure under the first Trump administration, which did get exports down to 400,000.
  • 00:30 But then since the Biden administration took office, it's been kind of creeping up.
  • 00:34 And then election and high oil prices were an issue.
  • 00:36 So the administration turned a blind eye.
  • 00:39 So yesterday when the a kind of tweet came out,
  • 00:42 everybody was like, OK, does this mean sanctions are being lifted?
  • 00:45 You know, anyway, the the point being, since then the White House has clarified this is not a change in sanctions policy.
  • 00:51 However,
  • 00:52 we would also say this does mean that there's not going to be a tightening in sanctions either,
  • 00:57 IE status quo prevails.
  • 00:58 China continues to buy about 1.5 to 1.7 million
  • 01:02 barrels per day of Iranian oil.
  • 01:03 Just build on some of those numbers.
  • 01:04 And Rita, what is that of a share
  • 01:06 of total Iranian production, the amount of barrels that are on the market right now already,
  • 01:13 so Iranian production is about 3 1/2 ish million barrels per day oscillates a bit between 3.53 point 7.
  • 01:20 All their exports, whatever they are exporting, goes to China
  • 01:23 and the rest of it is consumed domestic.