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| WTI Chart (Bloomberg) |
Note that China is already the largest buyer or Iranian oil. If Iran defies the sanctions, it will mean they need to sell more oil to Asia. But does China, in particular, want to increase their dependence on Iranian oil as their domestic consumption slumps. If they want to be a major world player, they may look at this a bit more diplomatically and think twice about increased business with Iran in the face of new, tougher sanctions. [Remember: US Treasury Secretary Timothy Geithner went to Beijing this week to discuss China's relationship with Iran, among other things.]
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