Iran Oil Piled Up In Chinese Ports: China Ready To Counterattack
“Bonded storage” in Chinese ports plenty of Iran Oil
Tankers are offloading millions of barrels of Iran oil into storage tanks at Chinese ports.
Two and a half months after the White House banned the purchase of Iran’s oil, the nation’s crude is continuing to be sent to China where it’s being put into what’s known as “bonded storage,” say people familiar with operations at several Chinese ports.
The store of oil has the potential to push down global prices if Chinese refiners decide to draw on it.
“Iranian oil shipments have been flowing into Chinese bonded storage for some months now, and continue to do so despite increased scrutiny,” said Rachel Yew, an analyst at industry consultant FGE in Singapore. “We can see why the producer would want to do so, as a build-up of supplies near key buyers is clearly beneficial for a seller, especially if sanctions are eased at some point.”
“A further escalation in U.S. tariffs on Chinese goods could jointly drive global economic growth a lot lower and encourage Iran-China cooperation,” Bank of America Merrill Lynch said in a June note. “If Chinese refiners start to purchase Iran oil in large volumes on a sustained basis as U.S. tariffs rise again, WTI could drop to $40 a barrel.”
DAX Index could flower from this scenario
This global scenario is frightening large investors, that are moving their capitals to more stable markets.
Key event this week will be the ECB meeting where will be release more info about guidelines that Europe will follow next months.
Germany saw hard time recently due to last events occurred in the Deutsche Boerse AG. A rate cut will see better results on the European markets than the American ones.
Key events this week
- 24/07/2019 10.30 ET – Crude Oil Inventories (Previous -3.116M)
- 25/07/2019 04.00 ET – German IFO Index
- 25/07/2019 07.45 ET – Deposit Facility Rate (Forecast -0.4%)
- 25/07/2019 08.30 ET – ECB Press Conference
Source: Bloomberg
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