From Yahoo Finance: 2025-05-08 07:11:00

Recent U.S. sanctions on two small Chinese refiners for buying Iranian oil have caused disruptions. Independent refiners, known as teapots, are selling products under different names. The sanctions have deterred other Chinese refiners from buying Iranian crude, with discounts for Iranian Light widening. Shandong Port Group has denied entry to vessels with Iranian oil.

The Shandong Port Group’s ban on cargoes for the two refineries has forced them to discharge at other ports. For example, the tanker Bei Hai Ming Wang carrying oil for the Shengxing refinery was rejected at the Laizhou port but eventually unloaded at a different terminal. Traders have stopped dealing with the sanctioned teapots, leading to trading disruptions.

State giant CNOOC ceased supplying crude to Shandong Haihua Group’s refinery after the U.S. sanctions. The teapots have resorted to selling products through new entities to navigate the sanctions. Chinese customs data does not show any oil shipped from Iran since July 2022, with imports labeled as originating from other countries. Despite Beijing’s opposition to unilateral sanctions, the impact on the oil trade is evident.



Read more at Yahoo Finance: Exclusive-US sanctions on China refiners over Iran oil disrupt operations, sources say