US push to cripple Iranian oil flows begins to show some serious effects

Tougher US sanctions on tankers involved in Iranian oil flows have tightened shipping capacity, particularly during the second leg of the journey, where vessels transport cargoes from the STS hub in the EOPL region to China. This has significantly driven up Iranian oil prices and prompted some refiners to seek alternatives.

• China’s November Iranian crude oil imports fell to a 4-mths low
• US sanctions on Iranian tankers caused a mismatch in shipping capacity on the two-part journeys; Floating storage climbs
• Some Chinese refiners sought alternative crude supplies in case Iranian shipments tightened further
• Iranian oil prices soar on higher risk premiums; Syrian flows expected to redirect to China