August 3 (UPI) – Iranian tankers continue to unload crude oil in Chinese ports despite US sanctions, a move that could disrupt world oil markets.
China imported 12 million to 14 million barrels from January to May, but the oil is kept in sealed storage, which means the oil has not gone through Chinese customs. The oil is not used, so it does not violate US sanctions, which prohibits Tehran from exporting crude oil.
"If China were to aggressively buy Iranian crude oil and / or pull down these stored volumes, oil prices would probably fall by $ 5 to $ 7 per barrel," Again Capital's founding partner John Kilduff said. "It would be a meaningful outlet for Iranian supplies that have been severely shrunk by the sanctions."
The Trump administration wants to use these sanctions to stifle Tehran's leadership. But this could be a way for Iran to bypass the sanctions and still generate revenue.
Iran also has benefits "because it gets its oil pre-positioned in the Asian key, ready for sale, if the sanctions are eased, an economic job ̵
Officially, Iran exports 100,000 barrels per day of crude oil, down 95 percent from the peak just two years ago.  The price of crude oil, the international reference, fell 7 percent after President Donald Trump announced new tariffs on $ 300 billion Chinese imports.