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Iranian oil availability to China shrinks after US blockade resumes
Kpler data shows non-Persian Gulf Iranian crude volume outside the Gulf of Oman has fallen to about 83 million barrels, down from over 100 million barrels before the mid-July blockade restart.
Iranian crude that was readily available to Chinese buyers has nearly dried up after the United States reinstated its blockade on Iran’s oil exports, according to data cited by Kpler.
Kpler estimates total Iranian crude volume outside the Persian Gulf and Gulf of Oman at about 83 million barrels, down from over 100 million barrels before the US reinstated the blockade in the middle of July after US-Iran talks to make a deal collapsed.
About half of the 83 million barrels, roughly 40 million barrels, is in floating storage around Singapore’s Eastern Outer Port Limits anchorage, but market participants told Kpler that only two cargoes, about 4 million barrels, remained unsold offshore Singapore.
Kpler analyst Muyu Xu said the lack of laden Iranian tankers able to break through the blockade suggests buyers could face virtually no new Iranian supplies for late-September delivery onward, and that the thin availability has pushed Iranian Light crude to a $3.50 premium over ICE Brent this week, versus a $3.50 discount a week earlier.
Latest closeWTI crude $82.40 ▲1.4%|Brent $88.59 ▲1.8%