Beijing buying less crude from Iran

WASHINGTON, July 29 (UPI) -- Chinese imports of crude oil from Iran declined by 13 million barrels as Beijing focuses on Iraq and Saudi Arabia, government records indicate.

The United States and the European Union in July imposed tight new sanctions on Iran's energy sector in response to Tehran's controversial nuclear program.

Afshin Molavi, an expert on Iran at Washington think tank New America Foundation, said despite the new sanctions, Beijing may be simply shopping around for better prices.

"There is a lot of talk about whether this is a political decision by China or whether it's simply a pricing matter," he was quoted by the Emirati newspaper The National as saying. "We don't have a definitive conclusion on that yet."

Iran in June shipped around 9 million barrels of crude oil to China, making China the third-largest customer for Iran. That level, however, is down 13.1 million barrels compared with the same time last year, The National adds.

European companies and international oil traders moved from the Iranian energy sector as lawmakers considered new sanctions against the Islamic republic. China, as a result, became a major customer for Iran as other countries fled the market.

Molavi added, however, that Beijing is looking elsewhere for crude as the Asian economy gains steam. This, he said, suggests Iran needs China as a customer more than China needs Iranian crude.