US Blockade Cuts Iran Oil Exports to China

The US blockade of Iran's shipping and ports has significantly reduced Iranian oil exports to China, threatening key suppliers for independent Chinese refiners.

The number of offers for Iranian oil cargoes to China for September and October delivery has declined from July and August cargoes, according to four trade sources familiar with the matter.

Iran's oil exports have fallen since mid-July, with no visible crossings of the Strait of Hormuz by supertankers carrying Iranian crude since then, according to data from ship-tracking company Kpler. Only 30 million barrels of Iranian crude remain in Asian waters, half of the usual levels.

Iranian crude held in floating storage outside the US blockade zone has fallen to about 80 million barrels from about 105 million barrels before the blockade was reinstated, Kpler data showed.