lørdag 21. september 2019

China depends on foreign oil. The Saudi attack is a wake-up call


Last weekend's drone attack on Saudi Arabian oil facilities sent shockwaves through global energy markets and the price of crude spiking. While Saudi authorities have pledged that production will soon be back on track and oil prices have fallen, the attack underscored China's particular vulnerability to disruption in oil supplies.

As the world's largest crude oil importer, China's heavy dependence on other countries for energy has influenced much of its foreign policy. Beijing is trying to reduce that dependence, but the needs of its growing economy and a trade war with the United States have put it in an awkward position. It's buying more Saudi oil than it has done for years.