Due to the easing of US sanctions, Iran has increased its oil supplies to China. Thus, it is possible to reduce the price of oil, push the Russian Federation out of the market, and create competition for the so-called “shadow fleet” of old tankers.
The United States, as a result of secret agreements with Iran, has not officially eased sanctions so that Iranian oil can more actively enter the world market and squeeze Russian oil. On Friday, August 25, writes Bloomberg.
Months of secret diplomacy between the two countries have led to progress on a prisoner exchange, the release of frozen assets, and possibly even Iran’s uranium enrichment. They also seem to have reached an informal deal on oil flows.
On condition of anonymity, US officials told reporters that they were gradually easing sanctions on Iran’s oil sales. Tehran has kept production at its highest level since the ban was imposed five years ago and has been supplying China with more crude oil for the past decade. Iranian officials are confident they will bomb more soon.
As a result, supply in the world market increased, which lowered prices. And this could be useful for US President Joe Biden, who soon has to start the election campaign.
Tehran has been offering Beijing deep discounts on its oil to compete with Russian supplies that Europe has rejected. Traders say Iran’s two main grades are currently trading at a discount to Brent of more than $10 a barrel.
Tehran is also forced to compete with Russia for the so-called “shadow fleet” of old tankers, since “white” carriers cannot cooperate with Iran due to sanctions. Experts doubt that Russia and Iran will be enough for two of the entire shadow fleet available on the market.
It was previously reported that Iran was pushing Russian oil out of China. China has dramatically increased its purchases of oil from Iran. So, he replaced it with very expensive Russian oil.
Source: korrespondent
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