The impact of sanctions on Iran’s oil exports to China

According to Energy Press, the terrorist attack by the Zionist regime on the Iranian consular building in Damascus and Iran’s response to this regime raised concerns about the continuation of Iran’s oil exports to private Chinese refineries, but analysts and business sources say that this volume is unlikely to change at the moment. .

Market participants have questioned how tougher US sanctions could threaten oil supplies and potentially disrupt export flows. A source associated with a private refinery in Shandong said: “I am not surprised that the United States will impose more sanctions on Iran’s crude oil exports after Tehran’s recent operation, and I do not think that the American action will change the whole procedure.”

Iran’s oil shipments have been the main feed of China’s independent refineries. According to the estimate of “S&P Global”, these shipments usually make up 40-50% of raw materials imported by independent refineries.

S&P Global collects information from commercial sources and independent refinery sources, data analysis firm Kepler, shipping brokers and port sources and cross-checks this information with sources with direct knowledge of the matter.

Currently, almost all Iranian oil shipments are settled in Chinese yuan instead of dollars.

Another refinery source said: More sanctions will certainly make it more difficult to import Iranian cargo and more companies involved in these transactions may be sanctioned. But it can also lead to lower barrel prices and encourage buying.

Sijia Sun, assistant director of downstream research and analysis at S&P Global, said: Until now, the flow of Iranian oil exports to China continues as usual, but the status of these exports in the future will depend on the implementation of sanctions by the United States.