US Energy Secretary Chris Wright thinks China is about to start buying a lot more American oil. The reason is straightforward: when your usual supplier is in the middle of an armed conflict, you find a new one.
Wright told CNBC he expects China to purchase “growing amounts of US oil” as the US-Israeli conflict with Iran disrupts traditional Middle Eastern supply chains.
The Strait of Hormuz problem
Roughly 20% of the world’s oil flows pass through the Strait of Hormuz. When there’s a military conflict involving the country on one side of it, shippers get nervous.
Wright emphasized the need for free flow through the Persian Gulf and called for an end to Iran’s nuclear program. He suggested a resolution could come relatively soon.
