Business as Usual for Sinopec, Geopolitical Hooha or No

The US sanctions are a good opportunity for Chinese oil and gas companies to secure a higher stake in Iran. CNPC taking over Total's share in the South Pars project is just the most obvious case.

For sure they will hold. The sanctions will not last forever and the Chinese are on a long term strategy (One Belt one Road...). They won't miss such a good opportunity to get an easy access to the huge Iranian reserves of a cheap-to-extract oil.

And If the US try to apply sanctions on the Chinese companies trading with Iran, I'm sure China has some way to retaliate against US companies.

Sinopec can play on the fact it imports oil from Iran and US to avoid sanctions. If the US apply sanctions on Sinopec for trading with Iran the company can stop the US oil imports in retaliation.

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China lifted tariffs on crude oil from the U.S.  Next will be LNG, then soybeans and possibly pigs, etc.  They are facing African swine virus and they are culling up to a thousand pigs this week.  So their going to be in a big hurt if this virus spreads.  Then Brazil is having transportation problems with truckers who deliver soybeans and other agricultural products to the ports.  So increasing soybean prices due to increasing wages.  China might be willing to shoot itself in the foot with a bebe gun but not a shotgun. 

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