Article link:https://www.wsj.com/articles/iran-boosts-oil-exports-amid-nuclear-deal-talks-11618497634
In Iran there has been talk about a new deal involving oil exports. Nearly two years ago, Iran sanctioned oil prices have increased due to the rise in Chinese imports. However, with this cause it could possibly take a toll on West’s advantage with admin talks dealing with Tehran and a new nuclear deal. “In two closely followed oil market reports released this week, OPEC and the International Energy Agency separately cited big jumps in Iranian crude production. The Islamic Republic pumped 2.3 million barrels a day in March, according to the IEA.” Knowing this information, since the Trump administration from the United States government, this is the highest oil pump there has been. “The IEA said the production hike was driven by China, which boosted purchases from Tehran to 600,000 barrels a day, five times more than in the first nine months of 2020.” Iran’s global agency goal is to make it challenging for others to track how much oil is produced.
Knowing this information, you might ask, why is this so concerning? With the involvement now with the U.S due to Biden being elected, now oil traders are seeing the prices rise with Irannian sales and with the involvement of China. “Despite U.S. sanctions, Iran’s crude supply has been on an uptrend since late 2020, after a buying spree from China appeared to accelerate,” the IEA said this week. “Hefty purchases appear to be continuing as Washington and Tehran restarted indirect talks,” the agency said. This is concerning due to the Chinese using some of the same suplieries as the U.S and creates possibly an alliance from the middle east countries, especially Iran, and could possibly result in the U.S not being able access to the oil. Due to the U.S now getting oil from overseas, the country as a whole has become reliant especially with gas and other oils for different matters in middle east countries. This could become detrimental with the Iran and Chinese governments surpassing the oil industry.
This article relates the class by the levels of analysis. On a regional level you have the middle east area, where predomitaly is drilling oil. On a regional level you have China, which is playing a major role in the oil industry and forming alliances due to oil, especially Iran. Iran is surpassing in the oil industry and trading with countries like the United State. The United States government is another example on this level and has become reliant on countries like Iran to supply oil. At an individual level you have Joe Biden, President of the United States, who created a plan for UNited States to get oil now from countries in the Middle East.