China Cuts Iranian Oil Purchases as US Sanctions Deepen Trade Strain
Updated
Updated · Bloomberg · Jun 12
China Cuts Iranian Oil Purchases as US Sanctions Deepen Trade Strain
3 articles · Updated · Bloomberg · Jun 12
Summary
Chinese independent refiners have reduced Iranian crude buying and lowered operating rates, putting Tehran’s main oil export channel under what traders describe as its biggest test yet.
Mounting losses at the so-called teapot refiners and weaker fuel demand in China have eroded appetite for sanctioned barrels, while recent US measures have made some buyers more cautious.
Iranian sellers have responded by cutting prices to lure back demand, underscoring how pressure from both market weakness and sanctions is squeezing the trade.
The pullback threatens a key economic lifeline for Tehran because China has remained the most resilient buyer of Iranian oil through years of US restrictions.