China Responds to Shandong Port Potential Ban on U.S.-Sanctioned Oil Vessels

By Garry

China Responds to Shandong Port Potential Ban on U.S.-Sanctioned Oil Vessels

China Responds to Shandong Port Potential Ban on U.S.-Sanctioned Oil Vessels

Shandong Port Group’s Controversial Decision

Shandong Port Group, which manages several major terminals along China’s east coast, is reportedly considering a ban on U.S.-sanctioned vessels. This move could significantly impact oil imports from Iran, Russia, and Venezuela, which have been a major source of discounted crude for China.

Impact on China’s Oil Imports

The port group is a key entry point for crude oil from these embargoed nations. Last year, nearly one-fifth of China’s total oil imports came from these countries. If the ban is enforced, it could increase shipping costs for independent refiners in Shandong, who are the main buyers of discounted crude.

Chinese Foreign Ministry Responds

In response to the report, a Chinese foreign ministry spokesperson stated that they were unaware of the ban. The ministry reiterated China’s longstanding opposition to U.S. sanctions, labeling them illegal and a violation of international law due to their lack of U.N. Security Council authorization.

Potential Consequences for Oil Trade

Traders warn that the ban could slow down oil imports into China, with Shandong refiners likely facing higher costs. The move also reflects ongoing tensions between China and the U.S. regarding sanctions and trade policies.

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