Iranian oil offers to Chinese buyers fall as US blockade bites, sources say
Trade sources say premiums have replaced discounts for some cargoes, and Iranian crude in floating storage has fallen to about 80 million barrels, Kpler data showed.
- On Friday, Iranian crude oil offers to Chinese buyers declined and prices surged as the reinstated U.S. blockade restricts shipments from Kharg Island, Tehran's key export terminal.
- The U.S. re-imposed its blockade on July 13 after negotiations to halt the war collapsed, attempting to cut off oil sales—Tehran's primary source of hard currency.
- Kpler Senior Crude Oil Analyst Muyu Xu noted that Iranian Light crude surged to a $3.50 premium over ICE Brent this week, reversing from a prior $3 discount.
- Independent Chinese refiners in Shandong must now secure alternative feedstocks or risk cutting throughput in October as their inventories run thin.
- Treasury Secretary Scott Bessent threatened "the toughest sanctions in history" on Thursday to pressure Iran to reopen the Strait of Hormuz, with enforcement details expected Monday.
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Iranian oil offers to Chinese buyers fall as US blockade bites, sources say
Iranian oil offers to Chinese buyers fall as US blockade bites - Markets
The US re-imposed its blockade of Iran's shipping and ports on July 13 as a deal to halt the war between them broke down in an attempt to cut off oil sales, Tehran's primary source of hard currency.
US Blockade Bites Iran’s Oil Lifeline As Chinese Buyers Cut Imports, Tehran Vows to Defy Trump’s 'Unjust' Sanctions
As Iranian crude becomes scarcer, prices are fluctuating, with some being offered at premiums. Despite looming sanctions, China continues to buy Iranian oil, rejecting unilateral measures and exploring alternative sources in response to supply uncertainties.
Iranian Oil Supply to China Is Rapidly Drying Up
Iranian crude oil cargoes readily available to Chinese buyers have nearly dried up following the reinstated U.S. blockade on Iran’s oil exports, suggesting that independent Chinese refiners, the biggest buyers of Iranian crude, may have to turn to alternative supply as soon as next month. Total Iranian crude volume outside the Persian Gulf and Gulf of Oman is currently about 83 million barrels, down from over 100 million barrels before the U.S. …
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