China's refiners have imported lower volumes of Iranian crude in August compared to July as the U.S. blockade reinstated in mid-July is squeezing crude supply to Iran’s top oil customer. So far this month, China is estimated to have imported about 534,000 barrels per day (bpd) of Iranian crude oil, down from an estimated 823,000 bpd in July, according to preliminary data by Kpler.
The reinstated U.S. blockade on Iranian oil exports is preventing new supply from Iran to leave the Persian Gulf, while the Iranian oil volumes on water in areas outside the Gulf of Oman beyond the U.S. blockade are shrinking fast, with few cargoes still available for purchase.
This leaves China’s independent refiners, the so-called teapots which have typically bought the lion’s share of Iran’s sanctioned oil in recent years, in search of alternatives.
