Oil price to rise? Millions of barrels of Iran oil piled up in China ports

International News

Tankers are offloading millions of barrels of Iranian oil into storage tanks at Chinese ports, creating a hoard of crude sitting on the doorstep of the world's biggest buyer.
Two and a half months after the White House banned the purchase of Iran's oil, the nation’s crude is continuing to be sent to China where it's being put into what's known as "bonded storage," say people familiar with operations at several Chinese ports. This oil doesn't cross local customs or show up in the nation's import data and is not necessarily in breach of sanctions. And while it remains out of circulation for now, its presence is looming over the market.
The store of oil has the potential to push down global prices if Chinese refiners decide to draw on it, even as Organization of Petroleum Exporting Countries and allies curb production amid slowing growth in major economies. It also allows Iran to keep pumping and move its oil nearer to potential buyers.
"Iranian oil shipments have been flowing into Chinese bonded storage for some months now, and continue to do so despite increased scrutiny," said Rachel Yew, an analyst at industry consultant FGE in Singapore. “We can see why the producer would want to do so, as a build-up of supplies near key buyers is clearly beneficial for a seller, especially if sanctions are eased at some point.”
There could be more Iranian oil headed for China's bonded storage tanks, Bloomberg ship-tracking data show. At least ten very-large crude carriers and two smaller tankers owned by the state-run National Iranian Oil Company and its shipping arm are currently sailing toward China or idling off its coast. The vessels have a combined carrying capacity of over 20 million barrels.

 The bulk of Iranian oil in China's bonded tanks is still owned by Tehran and therefore not in breach of sanctions, according to the people. The oil hasn't crossed Chinese customs so it is theoretically in transit...Read More

US cyber forces launched a strike against Iranian military computer systems

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Company News

International retail giant Walmart Thursday agreed to pay over $282 to various US bodies to settle charges of violating anti-corruption regulations while conducting its business in India, China, Brazil and Mexico.
According to the US Security and Exchange Commission (SEC), these violations were conducted by Walmart's third-party intermediaries who made payments to foreign government officials without reasonable assurances that they complied with the Foreign Corrupt Practices Act or FCPA.
SEC has charged Walmart with violating FCPA by failing to operate a sufficient anti-corruption compliance programme for more than a decade as the retailer experienced rapid international growth.Walmart agreed to pay more than $144 million to settle the SEC's charges and approximately $138 million to resolve parallel criminal charges by the Department of Justice for a combined total of more than $282 million, SEC said.
"Walmart valued international growth and cost-cutting over compliance," said Charles Cain, Chief of the SEC Enforcement Division's FCPA Unit."The company could have avoided many of these problems, but instead Walmart repeatedly failed to take red flags seriously and delayed the implementation of appropriate internal accounting controls," he said.
Walmart consented to the SEC's order finding that it violated the books and records and internal accounting controls provisions of the Securities Exchange Act of 1934.

 According to the SEC's order, Walmart failed to sufficiently investigate or mitigate certain anti-corruption risks and allowed subsidiaries in Brazil, China, India, and Mexico to employ third-party intermediaries who made payments to foreign government officials without reasonable assurances that they complied with the FCPA.

US sends naval group to Middle East in 'unmistakable' message to Iran

International News

The United States is sending an aircraft carrier strike group and a bomber task force to the Middle East in a "clear and unmistakable" message to Iran, National Security Advisor John Bolton said Sunday.

"In response to a number of troubling and escalatory indications and warnings, the United States is deploying the USS Abraham Lincoln Carrier Strike Group and a bomber task force to the US Central Command region," Bolton said in a statement.

The deployment is aimed at sending "a clear and unmistakable message to the Iranian regime that any attack on United States interests or on those of our allies will be met with unrelenting force," Bolton said.

"The United States is not seeking war with the Iranian regime, but we are fully prepared to respond to any attack, whether by proxy, the Islamic Revolutionary Guard Corps, or regular Iranian forces."
The statement did not specifically state why the deployment is taking place now, but it comes during a deadly escalation between Gaza-based Palestinian militants and Israel in which the two sides have traded a barrage of rocket fire and air strikes in recent days.


 The deployment also comes amid heightened tensions between Washington and Tehran over the latter's nuclear program, with the US taking aim at Iranian enriched uranium exports with sanctions.