Petrogeddon: The Iran & China Oil Deal
China Rushes to Complete $100B Deal With Iran
Ok, so China's going industrial and it needs a lot of oil now and its going to need even more later. The Chinese have been pouring a lot of money into this, securing links all over the place, and now they're trying to get the Iran deal sorted, worth a potential 300,000 barrels per day.
The Chinese and Iranian governments are speeding this deal through, because very shortly most of the West is going to start hollering for sanctions to be imposed against Iran for uranium enrichment. And as China has the power of veto, oil sanctions against Iran just aren't gonna happen. And there's very little point imposing sanctions against Iran that don't impose upon oil exports.
But it goes deeper. Iran, Iraq, North Korea, pretty much all Bush's 'Axis of Evil' switched to the Euro from the dollar as their oil currency at the beginning of the century. China holds an astronomical amount of US Treasury bills, and if they choose to switch all those to pay for oil in Euros, it's gonna cause some major instability in the world's markets and seriously destabilise the US.
It's in China's interests to make the switch. Hopefully they'll choose the least potentially damaging time, although God knows when that will be.
China Rushes to Complete $100B Deal With Iran
Ok, so China's going industrial and it needs a lot of oil now and its going to need even more later. The Chinese have been pouring a lot of money into this, securing links all over the place, and now they're trying to get the Iran deal sorted, worth a potential 300,000 barrels per day.
The Chinese and Iranian governments are speeding this deal through, because very shortly most of the West is going to start hollering for sanctions to be imposed against Iran for uranium enrichment. And as China has the power of veto, oil sanctions against Iran just aren't gonna happen. And there's very little point imposing sanctions against Iran that don't impose upon oil exports.
But it goes deeper. Iran, Iraq, North Korea, pretty much all Bush's 'Axis of Evil' switched to the Euro from the dollar as their oil currency at the beginning of the century. China holds an astronomical amount of US Treasury bills, and if they choose to switch all those to pay for oil in Euros, it's gonna cause some major instability in the world's markets and seriously destabilise the US.
It's in China's interests to make the switch. Hopefully they'll choose the least potentially damaging time, although God knows when that will be.
posted by deezelboy at 6:16 AM
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