Iran oil stuck at sea surges as China’s teapots turn to rival Middle East supplies, traders say
SINGAPORE/LONDON: Iranian oil supplies at sea are rising after Tehran ramped up exports during the interim peace deal with the United States, but sales have been slow as China’s independent refiners have turned to cheaper crude from Iraq, the UAE and Qatar.
The return of US sanctions this week risks leaving Tehran with more cargoes searching for buyers just as shipments arrive in Asia.
In recent weeks, independent Chinese refiners based in the eastern oil hub of Shandong, known as teapots, bought 16 million to 20.5 million barrels of crude from Qatar, Iraq and the United Arab Emirates, traders said, their largest purchases of non-sanctioned Middle Eastern oil since the conflict began.
Shandong’s independent refiners account for the bulk of China’s purchases of Iranian crude, as state-owned Chinese refiners have largely avoided direct imports since US sanctions were reimposed in 2018.
