Rising prices and tougher sanctions spell trouble for China’s Iranian oil imports

The market widely anticipates that President-elect Donald Trump will push for a hardline approach on Iran, tightening sanctions on Iranian oil and squeezing Tehran’s revenue streams. Yet, for China’s independent refiners—the leading buyers of Iranian crude since U.S. sanctions took effect—worries about future supply seem like a distant storm. For now, it's business as usual—until it isn't.

•    Soaring Iranian oil prices and tight crude import quotas cool purchases from Chinese teapots
•    Iran’s oil exports likely to see a second monthly decline as domestic demand for power generation surges
•    Tougher U.S. sanctions lead to a buildup of Iranian oil in floating storage
•    A major Chinese private refinery cancels purchase, fearing the sting of sanctions