Iran's Crude Sales to China Plummet Amid Escalating US Pressure

The Iranian government has faced significant economic pressure from the US in recent months. One of the major impacts is being felt in the country's oil sales, particularly to China. According to trade sources, Iranian crude oil offers for September and October delivery have dropped significantly compared to July and August volumes.

Traders report that prices have increased by approximately $2 per barrel. A key factor behind this drop is the drawdown of Iranian oil stored at sea. The country's floating crude reserves, which previously peaked at around 105 million barrels, have now declined to about 80 million barrels, with only around 30 million barrels remaining in Asian waters.

Iran has heavily relied on China to sell its sanctioned crude, particularly through independent refiners known as 'teapots'. However, diminishing availability has forced these refiners to seek alternative suppliers, turning to producers in Iraq and Brazil. This shift threatens Tehran's foreign exchange revenues.

Data shows a clear decline in China's reliance on Iranian oil. Chinese imports of Iranian crude have dropped from an average of 1.4 million barrels per day in July to around 534,000 barrels per day for the same period this year.