Secondary Sanctions Foreign Media: U.S. Sanctions Change the Flow of Chinese Crude Oil
The U.S. sanctions on a major oil import terminal in China are changing the flow of crude oil.
According to Bloomberg, analysts at Energy Aspects wrote in a research report that a major oil terminal in a northern economic province was added to the blacklist last week, which handles about 9% of China's crude oil imports. This could force several refineries near the port to cut production by up to 250,000 barrels per day.
Escalation
Attacks on the port infrastructure in the northern economic province and other ports mark an escalation of U.S. actions against participants in Sino-Iranian energy trade, extending beyond merely restricting so-called "teapot" independent refineries, which typically rely on cheap oil to make profits.
According to oil tanker tracking data compiled by Bloomberg, tankers have started to change their routes to avoid the terminal. According to the same data, the tanker "Severical," carrying about 2 million barrels of Brazilian crude, changed its destination to a port in a neighboring province on Monday morning.
According to Kpler data, the operator of the sanctioned terminal imported more than 1 million barrels of crude oil per day last year, of which about 189,000 barrels came from Iran.
Main Impact
Emma Li, a senior market analyst at Vortexa, said, "The main impact is state-owned refineries that receive non-sanctioned crude through this terminal, as sanctioned crude accounts for less than 25% of the total crude imports at this terminal."
Energy Aspects noted that due to traders rerouting crude oil shipments to other ports, the overall impact of this incident on China's crude oil demand will be temporary.
Sources: Bloomberg
Original: www.toutiao.com/article/1846013814689418/
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