Iranian oil shipments into China are set to fall in the near-term after new U.S. sanctions on a refiner and tankers, driving up shipping costs, but traders said they expect buyers to
Iranian oil shipments into China are set to fall in the near-term after new U.S. sanctions on a refiner and tankers, driving up shipping costs, but traders said they expect buyers to find workarounds to keep at least some volumes flowing.
Washington on Thursday imposed new sanctions on entities including Shouguang Luqing Petrochemical, a "teapot," or independent refinery in east China's Shandong province, and vessels that supplied oil to such plants in China, the top buyers of Iranian crude.
It was the fourth round of sanctions on Iran's oil sales since President Donald Trump's February call for "maximum pressure" on Tehran, including efforts to drive its crude exports to zero.
Iranian oil flows to China had already dropped due to rising freight costs as earlier sanctions hit shipping capacity, said traders, including three directly involved in the business.
A Chinese trading executive involved in Iranian oil business said the latest sanctions did not come as a surprise and expects that more plants or terminals could be targeted.
"But once companies re-adjust their business structures, imports would continue," said the executive, referring to measures such as changing entities for oil payments.
Still, imports may be curbed as the sanctions give larger
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