Oil price "war"! In order to "win" China, Iran is considering reducing crude oil prices again

Everyone knows that since it was sanctioned by European and American countries, Russia has begun to sell discounted oil
.
Of these, India buys the most, now importing almost 1.
2 million barrels per day, after all, Russian crude is $30 to $35 cheaper than Brent about $120 a barrel
.
Many people will ask, since Russian crude oil is so cheap, why doesn't our country import it in large quantities? In fact, China signed an oil contract with Russia before this, and it imports a lot
of oil every year.

On the basis of the original contract, China's crude oil imports from Russia have also increased
this year.
In May alone, China imported 8.
42 million mt of crude oil from Russia, up 55%
from a year earlier, the data showed.
At the same time, Russia has also replaced Saudi Arabia as China's largest crude oil supplier
after 19 months.

But that's not good news for other crude suppliers
.
Under the influence of the epidemic, it has become more important to gain market share in China, especially in Middle Eastern countries
that rely on oil exports.
As a major oil exporter, Iran has previously been restricted by US sanctions, and in the face of the Chinese market, which is constantly being "encroached" by Russia, Iran is considering reducing its already cheap crude oil prices to gain greater competitiveness
.

Official data show that China's crude oil imports from Iran declined in April this year, and although imports in May and June rebounded, they were only about
700,000 barrels per day.
To some extent, Russian Urals crude has replaced some Iranian crude
.

In fact, from a global point of view, Iran's crude oil price is also quite cheap, nearly $10 lower than the price of Brent crude oil futures, or even the same

Russian crude oil arrived in China in August about the same
.
However, ESPO crude oil from Kozmino, Russia, has lower sulfur content and higher quality, coupled with discounts, so China imports more
from Russia for a while.

Source: Bloomberg

Not only Iran, but also West African suppliers, such as Angola, Gabon and the Republic of
Congo, are under pressure.
These regions are farther away from China and spend more on transportation than Iran, so crude oil is more expensive and less competitive
.

Now Iran has considered further reducing crude oil prices on the original basis, which is of course beneficial to China, which can buy more and cheaper crude oil and stabilize domestic oil prices
.
However, our country has always "not put eggs in the same basket", so it will not significantly reduce crude oil imports to these countries
.
When China's economic activities fully recover, the demand for all crude oil will increase
by then.