March 22, 2010
By Chris Buckley and Chen Aizhu
Beijing - China's imports of Iranian crude oil shrank by nearly 40 percent in the first two months of 2010, compared to the same time last year, despite the Asian economy's expanding hunger for foreign oil.
Chinese customs data issued on Monday showed Iran, which was China's third biggest foreign supplier of crude oil last year, slipped to fourth behind Russia in the first two months of 2010.
Iran shipped 2.53 million metric tonnes of crude to China, a fall of 37.2 percent compared to the first two months of 2009.
China's crude shipments from its number one supplier and the world's top exporter, Saudi Arabia, rose 5.4 percent, and those from Angola and Russia rose 71.6 percent and 50.8 percent respectively to take second and third place.
Iran was the only major crude supplier to China to show a fall in deliveries, a drop which comes as Western powers have urged Beijing to approve proposed new United Nations Security Council sanctions against Tehran over its disputed nuclear activities.
China is one of the five permanent members of the Security Council that hold the power to veto resolutions.
Analysts stressed that two months of data do not amount to a firm trend, and China's slowed shipments from Iran may reflect market movements that have nothing to do with political pressures over the nuclear dispute.
"I don't see any political pressure to cut Iranian imports. If there is, we should have felt the same. Our volumes have remained steady," said a Beijing-based oil trader familiar with China's purchases of Iranian crude.
"I suspect prices are the main factor," said the trader, who spoke on condition of anonymity.
The numbers may nonetheless bolster arguments from Washington and other Western capitals that China can reduce crude from Iran without endangering energy security.
"While it's still too early to tell if this is a trend, if these numbers continue, it could signal a weakening of Chinese oil ties to Iran," said Stephanie Kleine-Ahlbrandt of the International Crisis Group, a non-profit organisation.
A continued decline "could show that China is preparing for the consequences of sanctions by further diversifying its sources of crude oil," said Kleine-Ahlbrandt, a Beijing-based adviser to the group who follows China's ties with Iran.
China's total imports of crude jumped by 45.9 percent in the first two months of this year to 35.6 million tonnes, reflecting the quickening pace of its economy. [ID:nTOE62L01Z]
A draft sanctions document circulated by Western powers proposes restricting more Iranian banks abroad, but does not call for sanctions against Iran's oil and gas industries. [ID:nN06119565]
Beijing has long said sanctions are not an effective tool for resolving international disputes, including over Iran, which Western powers say wants to develop the means to make nuclear weapons. [ID:nNTOE61904]
Tehran says its nuclear programme is for peaceful power generation.
China has backed previous U.N. resolutions against Iran, after working to cut out proposed measures that could threaten flows of oil and Chinese investments. -
By Chris Buckley and Chen Aizhu
Beijing - China's imports of Iranian crude oil shrank by nearly 40 percent in the first two months of 2010, compared to the same time last year, despite the Asian economy's expanding hunger for foreign oil.
Chinese customs data issued on Monday showed Iran, which was China's third biggest foreign supplier of crude oil last year, slipped to fourth behind Russia in the first two months of 2010.
Iran shipped 2.53 million metric tonnes of crude to China, a fall of 37.2 percent compared to the first two months of 2009.
China's crude shipments from its number one supplier and the world's top exporter, Saudi Arabia, rose 5.4 percent, and those from Angola and Russia rose 71.6 percent and 50.8 percent respectively to take second and third place.
Iran was the only major crude supplier to China to show a fall in deliveries, a drop which comes as Western powers have urged Beijing to approve proposed new United Nations Security Council sanctions against Tehran over its disputed nuclear activities.
China is one of the five permanent members of the Security Council that hold the power to veto resolutions.
Analysts stressed that two months of data do not amount to a firm trend, and China's slowed shipments from Iran may reflect market movements that have nothing to do with political pressures over the nuclear dispute.
"I don't see any political pressure to cut Iranian imports. If there is, we should have felt the same. Our volumes have remained steady," said a Beijing-based oil trader familiar with China's purchases of Iranian crude.
"I suspect prices are the main factor," said the trader, who spoke on condition of anonymity.
The numbers may nonetheless bolster arguments from Washington and other Western capitals that China can reduce crude from Iran without endangering energy security.
"While it's still too early to tell if this is a trend, if these numbers continue, it could signal a weakening of Chinese oil ties to Iran," said Stephanie Kleine-Ahlbrandt of the International Crisis Group, a non-profit organisation.
A continued decline "could show that China is preparing for the consequences of sanctions by further diversifying its sources of crude oil," said Kleine-Ahlbrandt, a Beijing-based adviser to the group who follows China's ties with Iran.
China's total imports of crude jumped by 45.9 percent in the first two months of this year to 35.6 million tonnes, reflecting the quickening pace of its economy. [ID:nTOE62L01Z]
A draft sanctions document circulated by Western powers proposes restricting more Iranian banks abroad, but does not call for sanctions against Iran's oil and gas industries. [ID:nN06119565]
Beijing has long said sanctions are not an effective tool for resolving international disputes, including over Iran, which Western powers say wants to develop the means to make nuclear weapons. [ID:nNTOE61904]
Tehran says its nuclear programme is for peaceful power generation.
China has backed previous U.N. resolutions against Iran, after working to cut out proposed measures that could threaten flows of oil and Chinese investments. -
Reuters
Source: http://www.busrep.co.za/index.php?fSectionId=552&fArticleId=5399851
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