China Ponders Iranian Oil Resumption Amid Alternative Supplies and Demand Slump

Chinese state-owned refiners are evaluating the resumption of Iranian oil purchases following the recent U.S. waiver allowing such trades. However, alternative supplies and reduced domestic fuel demand may curb interest. Key players, Sinopec and PetroChina, are examining logistical aspects like banking and shipping needed to facilitate potential transactions.

China's state-owned refineries are assessing the potential of renewing their purchases of Iranian oil, following a fresh US waiver that enables such trades. Despite this opening, alternative supply routes and waning demand in China's domestic market might restrain their eagerness to commit.

The last purchase by Chinese giants like Sinopec and PetroChina dates back to 2019, after then U.S. President Donald Trump imposed sanctions against Tehran's petroleum exports. However, officials within these companies, who requested anonymity due to the sensitivity of the topic, mentioned that thorough assessments are underway regarding required banking and shipping logistics for possible transactions.

Following a pact that eased US-Iran tensions, market observers are keen to see which firm might lead this renewal, especially with increased oil availability from rivals such as Saudi Arabia, Kuwait, and Iraq. Yet, questions linger about banking partners and Iran's own shipping capacities to fulfill any new contracts.