China to Resume Iran’s Oil Imports: Report
TEHRAN (Tasnim) – China will start loading the crude again in November after it halted purchases in October, according to people with knowledge of the matter.
The Chinese government had previously told at least two state-owned companies to avoid buying Iranian oil in the lead-up to the Nov. 4 sanctions review deadline.
The nation’s decision to restart purchases precedes an upcoming meeting between Chinese President Xi Jinping and US President Donald Trump at the Group of 20 summit next week and coincides with flaring trade tensions between the world’s two largest economies, Bloomberg reported.
The Asian nation was one of a handful that reportedly won exemptions from the US to keep importing Iranian oil without falling foul of sanctions, with a waiver allowing 360,000 barrels a day for six months starting November.
Although Chinese purchases are set to resume shortly, payments to Iran will only be settled at a later date, say the people, as both parties strive to work out a smooth process. India, one of Iran’s top Asian customers, is set to purchase 1.25 million metric tons in November while Korean refiners are likely to be held back by payment and insurance complications until February or later.
Earlier this month, the US administration agreed to allow eight countries to continue purchasing Iran’s crude oil for another 180 days.
Iranian President Hassan Rouhani reiterated recently that the country will continue to export oil, saying US sanctions are part of a psychological war doomed to failure.
Iran is currently awaiting the EU to launch a clearing house that would help match Iranian oil and gas exports against purchases of EU goods, bypassing dollar-based US financial vehicles.
