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US Sanctions Disrupt Iranian Crude Flows to China, Vortexa Says

Oil Tanker. Photographer: Ali Mohammadi/Bloomberg (Ali Mohammadi/Bloomberg)

(Bloomberg) -- Iranian crude exports to China have been disrupted by broader US sanctions on tankers, according to Vortexa Ltd., squeezing oil flows to the OPEC producer’s most important customer.

Some November cargoes remain undelivered, following disruptions to a number of October shipments, Emma Li, a senior market analyst, wrote in a note. At least 191 Very Large Crude Carriers are on the US sanctions list, according to Vortexa.

“Recent US tanker sanctions have led to a slowdown in Iranian vessels calling at Shandong ports, as Chinese buyers increasingly require cargoes to be delivered on non-sanctioned vessels,” Li said.

As a result of the disruption in crude flows, some independent Chinese refiners — which were recently granted additional import quotas — may face challenges in fully utilizing their allowances.

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