China’s oil trade with Iran has stalled as Tehran withholds shipments, demanding higher prices from its top client, Reuters quoted refinery and trade sources as saying.
The cutback in Iranian oil, which makes up some 10 percent of China’s crude imports and hit a record in October, could support global prices and squeeze profits at Chinese refiners.
Early last month Iranian sellers told Chinese buyers they were narrowing discounts for December and January deliveries of Iranian Light crude to between $5 and $6 a barrel below dated Brent, five traders who handle the oil or are familiar with the transactions told Reuters.
Those deals had been struck in November at discounts around $10 a barrel, the traders told Reuters.
The exclusive report did not say how Iran was going to manage its finances, as China is almost the sole buyer of its oil since the United States imposed full sanctions on Iranian crude exports in 2019.
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