Offers of Iranian crude to Chinese buyers have declined and prices have jumped this week as the US blockade has cut Tehran's shipments, according to trade sources, with the threat of more sanctions from Washington looming.The US re-imposed its blockade of Iran's shipping and ports on July 13 as a deal to halt the war between them broke down in an attempt to cut off oil sales, Tehran's primary source of hard currency, compounding earlier losses from wartime strikes on its energy infrastructure.
The number of offers for Iranian oil cargoes to China for September and October delivery has declined from July and August cargoes, four trade sources familiar with the matter said. The offers have declined as barrels already in ships on the water have been sold, they said.
Iran's oil exports have fallen since mid-July, with no visible crossings of the Strait of Hormuz by supertankers carrying Iranian crude since then, according to data from ship-tracking company Kpler, although many vessels turn off their location transponders, making them difficult to track.
The squeeze threatens a key feedstock for independent refiners, known colloquially as teapots, located in China's eastern province of Shandong, which account for about a fifth of China's refining capacity and are the top buyers of sanctioned oil.
