Yesterday, Bloomberg released an article in regard to hardware hacking by Chinese spies that found a way to infiltrate our technology supply chain of American companies and governmental agencies.
This news comes amid the swift sanctions and potential trade war that has been bubbling up between the United States and China as well as a list of other countries including Iran and Russia. As oil prices continue their trend higher with sanctions looming over oil producing and exporting countries, some are looking elsewhere to satisfy their energy needs. On Friday Reuters reported that U.S. oil exports have fallen ahead of Iranian sanctions that start back up on November 4th.
As The Trump administration issued sanctions on Iranian oil exports, they and OPEC are finding ways to offset the impact of U.S. sanctions by exporting more of its product to China and India. In the last week of September, U.S. exports to Chinese countries fell to 427,000 bpd while Iranian crude to China increased by 620,000 bpd as China is curtailing its United States crude purchasing amidst trade disputes between the superpowers. With the latest news regarding breach of supply chain, one must wonder the impacts of this will have on ongoing trade war. As looming sanctions put pressure on oil supplies in the upcoming months we must be cognizant of the complexities that arise between major economies and the realization of intellectual property theft capabilities. Is another batch of sanctions right around the corner? These recent events will certainly make for interesting, if not, a volatile beginning to 2019 for prices across many industries including the energy sector.