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China imports less Iranian crude as U.S. blockade tightens supplies

Kpler data cited by Reuters estimate August Iranian crude imports at about 534,000 bpd, down from about 823,000 bpd in July.

Reported · Written up by our desk · Energy

OilPrice, citing preliminary Kpler data reported by Reuters, said China’s refiners have taken in lower volumes of Iranian crude in August compared with July as the U.S. blockade on Iranian oil exports has been reinstated since mid-July.

The article says the renewed U.S. restrictions are limiting new Iranian supply leaving the Persian Gulf and that Iranian volumes on water in areas outside the Gulf of Oman have been shrinking quickly, leaving fewer available cargoes for purchase.

Reuters also reported that U.S. threats of severe economic consequences and warnings about countries extending a “lifeline” to Iran are making China’s independent refiners uneasy about potential stricter sanctions enforcement.

According to the piece, with thin Iranian availability and fewer cargoes showing up, Chinese buyers are starting to look beyond Russia and Iran, with the number of offers for September and October delivery dropping.

Latest closeWTI crude $82.40 ▲1.4%

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