China continues to buy Iran's Crude Oil; US, EU ramp up sanctions

Oil tankers able to haul at least 20-M bbls of Iranian Crude Oil signaled for China in July, highlighting one of the challenges the US and EU face as they pressure the Persian Gulf state over its nuclear program.

At least 10 very large Crude carriers controlled by Tehran- based NITC signaled for ports in the world's largest energy consuming nation this month, according to IHS Inc.

Each has the capacity to carry about 2-M bbls, 6 signaled they were sailing to China Monday, adding to 4 that did so 3 July, marking the largest monthly tally since data compiling snapshots of the company's fleet in April was undertaken. The latest delivery will be 20 August.

The European Union banned the purchase and insurance of Iranian Crude Oil from 1 July. About 95% of the world's tankers were insured by companies following EU law before the embargo.

The US Treasury Department said that on 12 July it would freeze NITC's American assets. The West claims Iran's nuclear program is an attempt to make an atomic weapon while the country says it's for civilian purposes. China imported about 17-M bbls a month from Iran last year, customs data show.

At least 32 ships in NITC's 40-strong fleet of Crude carriers provided signals within the past month, IHS data compiled showed Monday. That compared with 33 in the corresponding period to 3 July.

Paul A. Ebeling, Jnr.

Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.

Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.