The price of Iranian crude oil sold to China has risen to the highest in years as fresh U.S. sanctions have tightened shipping capacity and driven up logistics costs, trade sources and
The price of Iranian crude oil sold to China has risen to the highest in years as fresh U.S. sanctions have tightened shipping capacity and driven up logistics costs, trade sources and analysts said.
Rising prices for Iranian oil as well as Russian crude are raising costs for independent Chinese refiners that account for about a fifth of demand at the world's top crude importer, underscoring challenges ahead as the Trump administration is expected to ramp up pressure on Iran.
Some of the refiners are switching to supplies not under sanction restrictions, including from the Middle East and West Africa, to meet seasonal winter and pre-Lunar New Year demand, traders said.
Discounts for Iranian Light crude have narrowed to about $2.50 per barrel against ICE Brent on a delivered ex-ship (DES) basis to China, versus discounts narrower than $4 in early November. Discounts for Iranian Heavy crude have also narrowed to around $4-$5 a barrel from about $7 in early November, traders said.
Iranian oil prices have been climbing since October when exports from the OPEC producer dropped following concerns of Israeli attack on Iranian oil facilities.
A ramp-up in sanctions by the Biden administration last week on Iran froze
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