{
  "id": 12844904,
  "title": "China’s independent refiners swtich to Iraqi crude as US blocks Iran supplies",
  "url": "https://urgent.news/2026/10/08/chinas-independent-refiners-swtich-to-iraqi-crude-as-us-blocks-iran",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-08T10:00:37.000Z",
  "source": {
    "name": "Hellenic Shipping News",
    "slug": "hellenic-shipping-news",
    "url": "https://www.hellenicshippingnews.com/chinas-independent-refiners-swtich-to-iraqi-crude-as-us-blocks-iran-supplies/"
  },
  "original_language": "en",
  "account": "Independent Chinese refiners are turning to Iraqi crude oil after a US embargo halted supplies from Iran, their main supplier, while state-owned competitors have largely secured Russian barrels, according to Bloomberg on Tuesday. Smaller teapot refiners in Shandong province bought Basrah Heavy and Basrah Medium grades from Iraq for November delivery at prices up to $18 per barrel above ICE, indicating a pressing need for immediate supplies rather than a surge in Chinese oil demand. Around 50 tankers carrying primarily Iranian crude remain anchored off China's coast due to a US blockade, aimed at pressuring Tehran to agree to terms favorable to Washington. State-owned Chinese refiners are primarily buying Russian crude, driving up costs for independent processors. Certain Shandong teapot refineries might exhaust their stock by month-end, compelling them to compete for scarce alternatives as Beijing announced new crude-import quotas, according to Muyu Xu, a senior crude analyst at Kpler. To stave off shutdowns or significant cuts in production, refiners must secure alternative supplies promptly, Xu stated. The supply crunch has driven some processors towards sulfur-rich Basrah crude, which they usually shun in favor of cheaper Iranian barrels and diesel-rich ESPO from Russia's Far East. Greater Middle Eastern flows are making Iraqi crude more reachable as Gulf producers ship more oil through the Strait of Hormuz. Regional producers are offering substantial discounts to safeguard market share after experiencing reduced prices for their key grade for Asian clients. Russian barrels remain pricey, with ESPO trading almost $30 per barrel above Brent, the report noted. Buyers of Iraqi crude consist of both private processors in China's Shandong province and some large independent refiners. Iraqi barrels are marketed by trading firms such as Vitol Group, Trafigura Group, and Mercuria Energy Group, as well as TotalEnergies SE. Previously, Iran supplied over 1 million barrels per day to China's independent refiners via the blockade, with private processors as the primary buyers due to considerable discounts on sanctioned barrels that boosted refining margins.",
  "summary": "China’s independent refiners are purchasing Iraqi oil after a US blockade cut off supplies from Iran, their primary source, while state-owned competitors have secured most available Russian barrels. Private processors, including smaller teapot refiners in Shandong province, purchased Iraq’s Basrah Heavy and Basrah Medium grades for November delivery at premiums reaching $18 per barrel above ...",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Investing.com",
        "title": "China’s independent refiners swtich to Iraqi crude as US blocks Iran supplies",
        "url": "https://urgent.news/2026/10/06/chinas-independent-refiners-swtich-to-iraqi-crude-as-us-blocks-iran",
        "published": "2026-10-06T11:58:40.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}