Iranian Oil Hoard Swells Off Malaysia on Weak Chinese Demand

(Bloomberg) — A large cluster of oil tankers laden with Iranian crude are idling off eastern Malaysia, as Chinese independent refiners remain largely absent from the market despite deeper price discounts.

Cargoes of Iranian Light are being offered at a discount of around $5 a barrel to ICE Brent, compared with about $2.50 two weeks ago, according to traders who participate in the market. Shipments are for delivery next month.

China’s independent refiners, known as teapots, are the biggest buyers of Iran’s crude but they have reduced processing rates well below seasonal levels due to razor-thin margins. That’s