Iranian Oil Surge to China Hurts OPEC Efforts to Tighten Supply
- Private refiners in China are buying less from other suppliers
- Surging oil prices make cut-price Iranian barrels attractive
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The torrent of Iranian oil that’s been gushing into China in recent weeks is crowding out imports from other nations and threatening to complicate efforts by the OPEC+ alliance to tighten supply in the global market.
China, the world’s largest crude oil importer, is currently buying close to 1 million barrels a day of sanctioned crude, condensate and fuel oil from the Persian Gulf nation, according to estimates by traders and analysts. That’s displacing favored grades from countries such as Norway, Angola, and Brazil, traders said, and resulting in an unusually quiet spot market.