Iranian oil supplies to China tighten as US blockade cuts Tehran's crude exports
Trade sources say Iranian crude offers to China have declined and prices have risen as Washington's blockade disrupts Tehran's oil shipments.
Iranian oil shipments to China are dwindling due to a US blockade, according to trade sources. Prices for Iranian crude have risen as the blockade cut Tehran's exports, which provide the country with significant hard currency. The US reinstated the blockade on July 13, further restricting shipments and adding to previous losses from wartime strikes on Iran's energy infrastructure.
Trade sources report a decline in offers for Iranian oil cargoes to China for September and October delivery. Iran's oil exports fell since mid-July, with no visible crossings of the Strait of Hormuz by supertankers carrying Iranian crude. The squeeze threatens key feedstock for Chinese independent refiners, who are the top buyers of sanctioned oil.
Some Iranian crude is being offered at premiums to ICE Brent futures, with a premium of around $2 a barrel. Iranian crude in floating storage outside the blockade zone has dropped to about 80 million barrels, with only about 30 million barrels remaining in Asian waters. With limited Iranian supplies, Chinese teapots are looking beyond Russia and Iran, with some buying Brazil's Lapa crude and others considering Iraq's Basrah crude.
China, the world's biggest crude importer, buys over 80% of Iran's shipped oil, and the country rejects unilateral sanctions.
Written by urgent.news from Jerusalem Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
