Chinese Buyers Snap Up Crude Amid Reduced Iranian Oil Supply

Chinese independent refiners, known as "teapots," are buying oil from the Middle East and Africa as U.S. sanctions reduce the availability of Iranian crude, Weilun Soon, Yongchang Chin, and Alex Longley reported for Bloomberg News..

Iranian crude typically favored for its lower cost, has become scarcer and pricier due to tightened U.S. sanctions. I Photo: Miladfarhani Wikimedia Commons

Traders report that a large Chinese processor purchased 10 million barrels from Abu Dhabi and Qatar, helping clear a surplus of unsold crude. Iranian crude typically favored for its lower cost, has become scarcer and pricier due to tightened U.S. sanctions.

The sanctions, broadened in October, now target more tankers in the Iran-China oil trade, restricting ship-to-ship transfers and driving up prices.

Iranian oil shipments to China fell over 10% in November compared to October, according to Kpler.

Meanwhile, West African crude exports to China reached their highest monthly volume in two years, partially driven by the Iranian oil price spike, Sentosa Shipbrokers reported.