U.S. Sanctions Stunt Iranian Crude Flows To China

Iranian crude exports to China have been disrupted by expanded US sanctions on tankers, squeezing oil flows to the OPEC producer’s most important customer, Yongchang Chin reported for Bloomberg News.

At least 191 Very Large Crude Carriers (VLCCs) are now on the US sanctions list. I Photo: Wikimedia Commons

Some November cargoes remain undelivered due to disruptions in several October shipments, Emma Li, a senior market analyst at Vortexa Ltd., wrote in a note. According to Vortexa, at least 191 Very Large Crude Carriers (VLCCs) are now on the US sanctions list.

“Recent US tanker sanctions have led to a slowdown in Iranian vessels calling at Shandong ports, as Chinese buyers increasingly require cargoes to be delivered on non-sanctioned vessels,” Li said.

As a result of these disruptions, some independent Chinese refiners — recently granted additional import quotas — may face challenges in fully utilizing their allowances.