>> A critical source of North Korea's fuel cut off. Sources exclusively telling Reuters that China's largest energy company has stopped all sales of oil and diesel to the regime in recent months. It comes as the US steps up pressure on Beijing to tighten North Korean sanctions. Although as Reuters Aizhu Chen explains, it's not the official reason given for shutting off the tabs.
>> Experts have told us that the decision is a commercial one, meaning they are seems to be very little interference from the government. Experts have told us that the cut is because, the buyers mostly North Korean agent, couldn't pay up for the fuel. Because CNPC normally requires upfront payment for the fuel.
>> What's not clear is why North Korean buyers have been short on cash. Reuters has not been able to confirm any clear credit problems. But the fuel sale cut-off comes as Chinese and global banks ramp up compliance checks on their clients. As the US sanctions put dealings with Pyongyang under intense scrutiny.
Either way the CNPC dominates North Korea's fuel trade and the freeze will have a major impact.>> Gasoline is used for transportation also military and diesel is widely used as agriculture, farming purposes, or even fishermen. It's going to affect the harvest season later on in the year if it lasts.
And for gasoline definitely it's going to affect the transportation sector. Gasoline has increased by more than 50% since early May, while diesel has more than doubled.>> China has already suspended coal imports from North Korea, but Washington clearly wants it to do more. US officials telling Reuters that President Trump is even considering trade action against China itself.
If Beijing doesn't take further steps to choke Pyongyang's nuclear weapons program.