Iranian Oil to China Nearly Dries Up as U.S. Blockade Leaves 4 Million Barrels Unsold
Updated
Updated · OilPrice.com · Aug 21
Iranian Oil to China Nearly Dries Up as U.S. Blockade Leaves 4 Million Barrels Unsold
3 articles · Updated · OilPrice.com · Aug 21
Summary
Only two cargoes—about 4 million barrels—remain unsold near Singapore, leaving Chinese buyers with virtually no new Iranian crude for late-September delivery, according to Kpler.
Available Iranian crude outside the Persian Gulf and Gulf of Oman has fallen to 83 million barrels from more than 100 million before Washington reinstated the blockade in mid-July after U.S.-Iran talks collapsed.
The squeeze has flipped Iranian Light to a $3.50 premium over ICE Brent this week from a $3.50 discount a week earlier, as no laden Iranian tankers have broken through the blockade.
Kharg Island, which handles 90% of Iran's oil shipments, has been effectively choked off, and Trump's new warning of “tremendous” consequences for countries aiding Iran points squarely at China, buyer of more than 90% of sanctioned Iranian oil.
Chinese independent refiners, already running down Shandong stockpiles, may have to switch to Russian Urals or fuel oil—or cut October throughput as inventories thin.