Major oil-importing countries such as India may get a sweet surprise from the ongoing China-US trade war, as the international crude oil prices may slide as much as $30 per barrel if the dragon turns to Iran to quell its thirst for oil to retaliate against US tariffs, a recent report said. This, if happens, will cut India’s crude oil import bill dramatically, since the country depends on imports to meet over 80% of its energy requirements. Global crude oil prices can witness a freefall if China buys crude oil from Iran instead of the US in retaliation to the tariffs imposed on it, Bank of America Merrill Lynch said the research report, adding that this freefall can go up to $30 a barrel.
Latest data from China’s General Administration of Customs showed that China imported 796,000 metric tons of crude from the US in June. China’s crude oil imports stood at 9.7 million barrels per day in June. Asian oil buyers will be closely watching China’s July preliminary trade data to get an idea of prospective China’s partner, who can fulfill China’s oil appetite in the coming days, according to S&P Global Platts. If China switches to Iran oil, the move can cause unrest to the US foreign policy and can help to negate the effects of high tariffs imposed by President Donald Trump.
