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[财经英语角区] Pricing Dispute Threatens Iran's Oil Exports to China [推广有奖]

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thetimekiller 发表于 2012-1-7 15:31:32 |AI写论文

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Pricing Dispute Threatens Iran's Oil Exports to ChinaBy WAYNE MA

BEIJING—Iran's crude-oil exports to China, its largest export customer, are expected to fall by almost 40% in January because of a dispute over pricing and other contract terms, a person familiar with Iran's oil sales said.

Though China could play a key role in the effectiveness of international sanctions on Iran, a major supplier to its energy-hungry economy, it has steadfastly declined to join international efforts to deprive Tehran of revenue.  

Between January and November last year, China imported 25.3 million metric tons of crude from Iran, or about 555,000 barrels a day. Imports were up almost 30% from the previous year, customs data show.

China Foreign Ministry spokesman Hong Lei said on Thursday that the two countries have "regular and transparent cooperation" that doesn't violate any United Nations Security Council resolutions.

Roughly one-fifth of Iran's exported oil heads to China, according to Deutsche Bank, making it Iran's No. 1 single export customer. Iran is China's third-largest supplier, and Chinese companies are by far the biggest investors in Iran's energy sector.

This week, European Union member states agreed in principle to an embargo on Iranian oil as part of an effort to press Tehran to dial back its nuclear program, which is believed to be intended to produce nuclear weapons, a charge denied by Iran.

President Barack Obama on Dec. 31 authorized U.S. sanctions against Iran's central bank, a move that could affect the nation's oil sales.

U.S. Treasury Secretary Timothy Geithner will visit China and Japan in the coming week to discuss global economic developments, and will ask China and Japan to increase pressure on Iran, including financial measures targeting its central bank, the Treasury Department said Wednesday.

Oil exports to China could take a dip this month, as China International United Petroleum & Chemicals Co., known as Unipec, continues negotiating over the price of condensate, a light crude that can be used to make premium fuels such as kerosene and naphtha, from Iran's South Pars field, said the person familiar with Iran's sales.

Sinopec Corp., the parent company of Unipec, couldn't be immediately reached for comment.

The longer-than-anticipated negotiations delayed the start of Unipec's long-term supply contract, reducing China's Iranian crude imports by about 220,000 barrels a day, the person said. Although Unipec's contract could be finalized as early as next week, further delays could affect February orders as well, the person said.

Other contracts between Iran's national oil company and Chinese buyers have been finalized, the person said.

Unipec and state-backed Zhuhai Zhenrong Co. account for the bulk of China's crude imports from Iran, at about 460,000 barrels a day.

China's hiccups with Iranian crude supply come as South Korea and Japan weigh the implications of U.S. efforts to toughen sanctions against Iran. Indian national oil companies also are having difficulty routing payments through foreign banks for Iranian crude due to the sanctions.


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