• 4 minutes Why does US never need to have an oil production cut?
  • 9 minutes French Fuel Protests
  • 14 minutes Oil Prices
  • 23 mins Gaming the Price of Oil
  • 6 hours Could EVs Become Cheaper than ICE Cars by 2023?
  • 2 hours DOW down as tech shares plummet
  • 3 hours Is California becoming a National Security Risk to the U.S.?
  • 3 hours IEA: Oil Markets Heading Into Unprecedented Uncertainty
  • 11 mins Santa Drives A Tesla, Not a Sleigh-- I KNEW IT.
  • 4 hours EVs Set to Become the Biggest Battery Users
  • 4 hours Pros and Cons of Coal
  • 3 hours France Revolts Against Anti - Carbon Tax
  • 1 hour Plastic Myth-Busters
  • 3 hours Fishermen Sue Oil Companies Over Rising Ocean Temperatures
  • 10 hours Your idea of oil/gas prices next ten years
  • 5 hours Oil
  • 7 hours The Regime Doesn't Give Up: Rouhani Says Iran to Continue Oil Exports And Resist U.S. Economic War
The Implications Of Soaring Diesel Prices

The Implications Of Soaring Diesel Prices

Diesel prices are surging while…

It’s Time For Big Oil To Start Spending

It’s Time For Big Oil To Start Spending

Oil majors have been frugal…

Iranian Oil Exports To China Hit 874,000 Bpd In August

Oil tanker sunset

China imported Iranian crude at an average daily rate of 874,000 barrels last month, S&P Global Platts data shows, and, according to the agency, these will start declining now, with the August number representing the peak.

Loading data for delivery this month suggests that China imports of Iranian crude will average 581,000 bpd in September.

Despite this expected decline, China has said it will continue to do business as usual with Iran, including in oil, despite a promise that Beijing officials made to a U.S. delegation last month that Chinese refiners will not increase their intake of Iranian crude further. In light of the escalating trade war between China and the United States, it’s anyone’s guess how willing the Chinese will be to keep this particular promise.

As for how Chinese refiners would continue buying crude from Iran without attracting sanctions from the Department of Treasury, one way would be by using tankers owned and insured by the National Iranian Oil Company. Another, less public way would be to accept illegal shipments that Iran has suggested it could resort to under sanctions.

Sinopec, China’s and the world’s largest refiner, is one company that will continue buying Iranian crude despite sanctions because “The company's business will be hurt if it has to suspend imports from Iran,” S&P Global Platts quoted a Sinopec executive as saying last week. What’s more, in a filing with the U.S. Securities and Exchange Commission, Sinopec said "Since we have performance obligations under our Iran-related contracts in 2018, we are contractually required to continue our [purchases]."

Sinopec is the biggest Chinese buyer of Iranian crude, utilizing two-thirds of the total. PetroChina is another big buyer, taking in about one-tenth of total Chinese imports from Iran, and it recently boosted its capacity for refining Iranian blends. The third-largest buyer of Iranian crude in China is a trader, Zhuhai Zhenrong, which then sells it on to local refineries.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
-->