• 3 minutes 2nd Annual Great Oil Price Prediction Challenge of 2019
  • 6 minutes "Leaked" request by some Democrats that they were asking Nancy to coordinate censure instead of impeachment.
  • 11 minutes Trump's China Strategy: Death By a Thousand Paper Cuts
  • 14 minutes Democrats through impeachment process helped Trump go out of China deal conundrum. Now Trump can safely postpone deal till after November 2020 elections
  • 2 hours Shale Oil Fiasco
  • 4 hours Everything you think you know about economics is WRONG!
  • 10 hours Judiciary impeachment: Congressman says Sean Misko, Abigail Grace and unnamed 3rd (Ciaramella) need to testify.
  • 7 hours Tesla Launches Faster Third Generation Supercharger
  • 6 hours Quotes from the Widowmaker
  • 9 hours Offshore is changing
  • 17 hours READ: New Record Conoco Eagleford Vintage 5 wells, their 5th generation Test Wells . . Shale going bust . . . LAUGHABLE
  • 2 days Global Debt Worries. How Will This End?
  • 1 day You long it you short it it is Here for a long time since Trump signed it
  • 1 day Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 1 day IEA predicts oil demand will grow annually at 1 million barrels a day for the next 5 years

Breaking News:

Libyan Oilfield Is Offline Again

Tesla’s Largest Competitor Is Hidden In Plain Sight

Tesla’s Largest Competitor Is Hidden In Plain Sight

Tesla’s biggest competitor isn’t producing…

Natural Gas Set To Fall Even Further

Natural Gas Set To Fall Even Further

Natural gas prices are likely…

Sanctioned Crude? China Ship-To-Ship Oil Imports Leap Higher In September

Chinese flag

China’s crude oil imports from ship-to-ship transfers soared threefold between August and September to 910,000 tons, Bloomberg reports, citing ship tracking data. The source of the oil, the agency noted, was unclear.

“I think its highly likely that these ship-to-ship and Malaysian volumes are Iranian or Venezuelan crude,” Bloomberg quoted Michal Meidan, the head of the China Energy Programme at the Oxford Institute for Energy Studies as saying. “But of course the whole point here is to make it hard to be sure,” Meidan added.

Indeed, it is no secret that Iran has taken to ship-to-ship transfers in the open sea to avoid U.S. sanctions and continue exporting oil. China is the country’s most important oil buyer, not least because of its trade spat with the United States, and has been openly insisting that it will not stop buying Iranian crude.

China has pledged $400 billion in investments in Iran’s oil, gas, energy infrastructure and transport industries over the next 25 years, seeking to secure a much needed future oil and gas supply for a country whose domestic production cannot come close to satisfying its growing needs.

Washington has not been turning a blind eye to that. At the end of last month, Washington announced sanctions on several Chinese tanker operators on allegations they had violated U.S. sanctions against Iran and had shipped Iranian crude. The move sent shipping rates soaring.

Yet Iran is not China’s only controversial supplier of crude. Asia’s number-two economy has been financing Venezuela’s government under an oil-for-cash scheme and although Venezuela has struggled to continue serving this obligation, chances are it has found a way to bring the crude to China, with ship-to-ship transfers once again a convenient way to avoid detection.

Unsurprisingly, as ship-to-ship transfers expanded, imports of U.S. oil fell in September. That was the month when China launched tariffs on U.S. crude un response to the latest round of U.S. tariffs.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • Mamdouh Salameh on October 08 2019 said:
    Since the imposition of US sanctions against Iran’s crude oil imports, China has from the start announced that it will not comply with US sanctions and will continue importing Iranian crude. In fact, China’s imports of Iranian crude which normally account for 31% or 659,000 barrels a day (b/a) of total Iranian exports hit 1.2 million barrels a day (mbd) in August.

    Similarly, China made it clear that it doesn’t recognize US sanctions on Venezuela either and is continuing to buy Venezuelan crude openly and also helping Venezuela expand its crude oil and refined product production as well as helping along with Russia to keep the Venezuelan economy afloat.

    Consequently, China doesn’t have to resort to ship-to-ship oil imports from either Iran or Venezuela. What could be happening is a ship-to-ship transfer of crude destined for North Korea. China wouldn’t like to be seen supplying North Korea with crude oil above the limit specified by United Nations Sanctions on North Korea.

    Dr Mamdouh G Salameh
    International Oil Economist
    Visiting Professor of Energy Economics at ESCP Europe Business School, London

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play