Ahead of Chariman Xi’s visit to Washington DC for a state visit on September 24th and 25th, Reuters is reporting that China has asked Iran to halt all strikes on Saudi Arabia oil fields.
The request from China carries a self-interest as China’s oil dependencies have become problematic since the Strait of Hormuz became a point of economic friction between Iran and U.S. military forces. The Saudi East/West pipeline was also hit by Iranian backed Houthi rebels from Yemen, creating even more energy turmoil.
Additionally, Beijing is the most exposed to the recent congressional sanctions applied toward countries that retain trade relations with Russia.
Both President Trump and Chairman Xi have a vested interest in seeing an end to the conflict between Russia and Ukraine. However, with EU-NATO still provoking expanded conflict the dynamic has become one of middle-powers (Canada, U.K, EU) against significant energy powers China, USA and Saudi Arabia.
Another way to look at it is the coalition of Green Energy nations -vs- Low Cost energy nations.
The U.K, Canada and Europe have been supporting attacks against gasoline and diesel fuel refineries in Russia. This approach appears to contain a political motivation to drive up gas/diesel prices in the USA as part of an anti-Trump election strategy. The state visit by Chairman Xi comes at a critical time in the global energy dynamic.
HOUSTON, Sept 18 (Reuters) – Oil prices fell on Friday after China, acting on a request from Saudi Arabia, asked Iran to limit attacks by Houthi rebels on Saudi oil infrastructure that have threatened a second oil export route in the Middle East.