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China Cuts Iran Oil Purchases Ahead of U.S. Sanctions, While Saudi Arabia Vows to Increase Production
(Wall Street Journal) Benoit Faucon - China's largest oil refiners, China National Petroleum Corp. and China Petrochemical Corp., haven't booked any Iranian cargo for November. China has been importing about 600,000 barrels of Iranian crude a day. At the same time, Saudi Arabia this week pledged to ramp up supply as the kingdom sought to damp tensions over the killing of Saudi dissident journalist Jamal Khashoggi. This week Saudi oil minister Khalid al-Falih promised a new production increase of 300,000 barrels a day and didn't rule out topping the increase by another 1 million barrels a day if needed. His statements brought oil prices down to around $75 a barrel from recent highs around $85 a barrel. With the drop, "refiners can replace Iranian oil at a price they can afford," said Homayoun Falakshahi, an Iran-focused analyst at UK consultancy Wood Mackenzie.