US Blockade Reduces Iranian Oil Offers to China

The US blockade of Iran's shipping and ports has led to a decline in offers for Iranian oil to Chinese buyers, according to trade sources. This has resulted in higher prices and reduced shipments since mid-July.

The number of offers for September and October delivery has fallen from July and August levels, with some cargoes being sold at premiums to ICE Brent futures. For example, one source cited a premium of about $2 per barrel, which is an abrupt shift from the discounts seen earlier in the week.

Iran's oil exports have dropped since mid-July, with no visible crossings of the Strait of Hormuz by supertankers carrying Iranian crude. Ship-tracking company Kpler reported that some vessels turn off their location transponders, making them difficult to track.