US Sanctions Disrupt Iranian Oil Exports to China
US sanctions targeting oil tankers are disrupting Iranian crude oil exports to China, impacting flows to Iran’s largest customer, Bloomberg reports, citing energy analytics firm Vortexa Ltd.
Vortexa’s senior market analyst, Emma Li, reported that some November oil shipments remain undelivered, following disruptions to October cargoes. The firm notes that at least 191 Very Large Crude Carriers (VLCCs) are currently subject to US sanctions.
“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 explained in a research note.
This disruption poses challenges for independent Chinese refiners who recently received increased import quotas. The difficulty in securing non-sanctioned vessels to transport Iranian crude may prevent these refiners from fully utilizing their expanded import allowances.
