US Energy Secretary Chris Wright believes China will buy more American crude oil. This comes as war with Iran disrupts global energy supplies. China is a big buyer of Iranian oil. But attacks have blocked much of that supply through the Strait of Hormuz. Of what was open was closed and then the U.S. looks beyond reopening the Strait and that to benefit from the Strait of Hormuz closure.

In a CNBC interview, Wright said the US and China are natural trade partners in energy. They would comply with each other as mutually benefiting partners. This would open up a new Strait from U.S. to China for that would be profitable to the U.S. Also, he expects China to increase imports from the U.S. Gulf Coast and later from Alaska. Right now, most U.S. oil exports leave from the Gulf of Mexico. But more shipments to Asia, including China, are likely soon. Chris Wright believes China will be a great energy buyer from the U.S.

The conflict including U.S./Israel’s war on Iran has opened new opportunities for trade to the U.S. However, the war on Iran has caused the biggest oil supply shock in history. Prices have risen sharply. China has large reserves, but it needs steady oil for its economy. Buying more from America makes sense as Iranian oil becomes harder to get. No, wait! Iranian oil will not be harder for China to get.

Here’s why Chris Wright is optimistic incorrectly

Gwadar Port is a strategic, deep-water seaport located on the Arabian Sea in Pakistan’s Balochistan province. Situated near the Persian Gulf and the Strait of Hormuz. It serves as a critical terminal for the China-Pakistan Economic Corridor (CPEC). Pakistan has opened the route to import to over six locations from Iran and that the oil supply to China from Iran also connects by connecting Pakistan. So, it is whatsoever not tough for China to get oil from Iran to shift its way towards the U.S. to buy more crude oil as Chris Wright believes.

Wright thinks this change will help both China and the U.S. Moreover, America produces a lot of oil and also wants to sell more. China needs reliable supplies without depending too much on the troubled Middle-East. This shift could reshape global oil trade during the war. A win-win for America as what is supposed to be a day-dreaming by Chris Wright.

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