Iran has to reduce oil price because of Russia

Iran reduces the cost of its already cheap oil against the backdrop of the growth of supplies to the PRC of Russian hydrocarbons, writes Bloomberg.

The publication explained that China has become a key destination for Russian oil, since Moscow seeks to maintain exports after the start of the war in Ukraine, which ultimately led to increased competition with Iran.

In addition, it is noted that in May, Russian oil exports to China grew to a record level, and Russia overtook Saudi Arabia as the largest supplier of the world’s largest importer. Iran, reducing oil prices in order to remain competitive in the Chinese market, also managed to maintain strong export flows, probably partly due to the increase in demand for weakening coronavirus restrictions in China, Bloomberg notes.