China Widens Oil Purchases to Extend Influence From US to Iran
China resumed crude purchases from the United States while doubling discounted cargoes from Iran. Beijing is diversifying its energy portfolio and widening its geopolitical room for manoeuvre ahead of the Trump-Xi summit.
Nikkei ship-tracking data indicates China is set to take 280,000 barrels per day of US crude this month, the highest volume in two years. Over the same period, shipments from Iran rose to 1.8 million barrels a day, double the December average.
Analysts say the move serves two purposes: Beijing signals room for accommodation to Washington ahead of the Trump meeting, while extending financial support to Tehran. Although Iranian exports remain outside formal markets due to international sanctions, Chinese buyers settle payments in renminbi, which is also expanding non-dollar trade volume.
Markets responded by holding Brent crude steady around 88 dollars a barrel. The International Energy Agency expects China to account for more than 70 percent of net growth in global crude demand in 2026. Asian refining margins reached a six-year high last month, and the industry is watching Beijing's purchasing balance closely.
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