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Iran Slashes Cost of Its Oil to Compete With Russia in China

  • Tehran forced to cut crude prices to match Russian Urals grade
  • West African varieties one of hardest hit from upended flows
Processing facilities stand at the new Phase 3 facility at the Persian Gulf Star Co. gas condensate refinery in Bandar Abbas, Iran.

Processing facilities stand at the new Phase 3 facility at the Persian Gulf Star Co. gas condensate refinery in Bandar Abbas, Iran.

Photographer: Ali Mohammadi/Bloomberg
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Bloomberg News
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Iran is being forced to discount its already cheap crude even more as a top ally gains a bigger foothold in the key Chinese market.

China has become an important destination for Russian oil as Moscow seeks to maintain flows following the fallout from its invasion of Ukraine. That’s led to increased competition with Iran in one of the few remaining markets for its crude shipments, which have been significantly curtailed by US sanctions.