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Why is the price of oil going up even though our oil trade with Iran is normal?

Date:2018-11-16  browse:223

Why is the price of oil going up even though our oil trade with Iran is normal?

People usually need a lot of oil to drive, industrial production in all aspects also need a lot of oil, it can be said that living in modern times we can not lack of oil a day.

 Although our country has oil fields, it cannot be said that it is a very oil-poor country. But our country's oil demand is huge, in order to consider long-term development, 

we can not all rely on their own oil, after all, oil is a very limited resource, unlimited exploitation will not only cause the exhaustion of oil resources, 

but also cause harm to our ecological environment. Therefore, in recent years, China will only have limited oil exploration, most of the oil depends on imports.

 At the same time, our country has also conducted oil trade with many countries, which not only meets our needs, 

but also ensures that our oil supply is sufficient and stable.

However, as we all know, Iran is a country with a lot of oil and has also exported a large amount of oil. 

Although the United States has imposed sanctions on Iran and prohibited other countries from trading oil with Iran, 

China is not within the scope of the ban and still imports oil as before. So why is the price of oil still going up in our country?

 First, because of the number of countries that trade oil in our country, the oil that Iran sells to us is only a small fraction of the oil that we import. 

This is also for national security reasons, after all, if you import a lot of oil from a country, 

it is basically tantamount to putting their own country's industrial lifeblood in the hands of others, other countries can not only blackmail China,

 if there is anything wrong with the country, China will be quickly implicated. So we don't import a lot of oil from one country. 

So the Iranian issue has little direct impact on oil prices in our country.

However, oil prices in the domestic market are also adjusted according to international oil prices.

 If international oil prices continue to rise, domestic oil prices are bound to rise as well. Therefore, 

the rise in domestic oil prices has a lot to do with international oil prices. The problems of the United States and Iran have caused the rise in international oil prices, 

which has affected China and caused the rise in domestic oil prices. And the oil that our country imports is not entirely for its own use,

 a large part of it is remade, made into gasoline, diesel and the like, which will be exported again, making a profit.

 Although our country is not short of oil, there are still many oil-poor countries in the world, such as Japan, which is very close to our country, 

and the export of petroleum products to these countries can also bring us huge profits. Therefore, even if the oil flood into China, 

China's oil prices should still rise.

Source: 小五知识

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