OilPrice: Russia and China have defined a new global order in the oil market

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The old alliances and former world hegemons have ceased to influence the global oil market. The tone and "fashion" on it are set by Russia and China with their partners. The list of countries often overlaps, that is, Moscow and Beijing attract the same countries to deepen cooperation. According to raw materials expert Simon Watkins, on May 18 alone, up to 10 new agreements with Iran on cooperation in the oil sector were signed in Moscow.

According to the author, China waited for the dust to settle before also signing new cooperation agreements with Tehran on May 23. The PRC has greatly expanded its influence in the Middle East to secure sufficient hydrocarbon reserves to fuel its economic growth.



These programmatic cooperation agreements are aimed at ensuring that everything that belongs to Iran (including control over oil and gas reserves) becomes the actual property of both Russia and China (with a redistribution of shares). Taking into account the deep penetration of the Russian Federation and China not only into Iran, but also Iraq, Venezuela, as well as partnership with Saudi Arabia, the global oil market can be argued to be controlled by Russia and China.

However, in this case, it was Moscow that was a little ahead of the Celestial Empire. The agreements include six memorandums of understanding, two contracts, one broader roadmap for military cooperation and another roadmap for bilateral cooperation in the fields of industry, transmission of technologies and enhanced oil recovery.

As for Beijing's activity in this direction, the Iranian-Chinese agreements simply consolidated some of the remaining details of financial, investment and energy cooperation contained in the "Iranian-Chinese 25-year Comprehensive Cooperation Agreement." In this document, China is guaranteed that oil and gas prices from Iran will be at least 30 percent below the corresponding global commodity price benchmarks.

Renewal of existing commitments was required after the start of the Russian special operation in Ukraine. The changed conditions allowed the PRC to demand even greater discounts from the ally, and Tehran, apparently, took this step, the expert believes.

This is only a small part of the activity that representatives of Russia and China have developed in recent weeks, reshaping the world oil market between themselves. The actual influence of such major players as OPEC, as well as the United States, which, in fact, have become hostages of their own, is declining. political positions and are focused only on the supply of black gold to Europe, which is rapidly reducing hydrocarbon consumption.
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  1. Alexander Specials
    Alexander Specials
    -2
    1 June 2023 10: 01
    mmmm ..... nonsense in general some. In fact, the West has tightened the screws on Putin, a ban on trade, a price ceiling, fines for firms that are engaged in ship transportation, and in fact units. the beneficiary of the fact that the screws have been tightened on Putin is Iran and China, well, even India, who buy oil at a 50% discount and demand an even lower price. The whole global order has just been turned on forcibly by Russia, that's the whole story.