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China’s independent refiners expected to boost Iranian crude buys

Shandong stockpiles are estimated to have fallen to about 360 million barrels by end-July, after a roughly 35 million barrel draw in July alone.

Reported · Written up by our desk · Energy

China’s independent refiners, often called “teapots,” are expected to raise purchases of higher volumes of Iranian crude oil in August as inventories in Shandong have dropped to the lowest level this year, OilPrice reported, citing Energy Aspects data through Bloomberg.

The outlet said the inventory draw in July was about 35 million barrels, the biggest monthly decline since Energy Aspects began estimating and compiling its data in 2016. Current Shandong stockpiles are estimated at around 360 million barrels at the end of July.

OilPrice added that the expected uptick comes as millions of barrels of Iranian crude reportedly exited the Strait of Hormuz during a mid-June to early-July window, after the U.S. lifted its blockade aimed at preventing Iranian exports.

The report also noted that China had previously accumulated more than 1.3 billion barrels of crude across commercial and strategic reserves, even as the independent refiners appear to have reduced purchases during the Middle East conflict’s first six months amid higher international crude prices.

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