China Allows Teapot Refiners More Crude to Cope With Iran Crunch

China has granted independent refiners additional crude import quotas to allow them to continue to produce fuels at officially mandated levels, helping Beijing to cope with the impact of disrupted supplies from the Persian Gulf.

The concession — given before the US, Israel and Iran agreed to a two-week ceasefire — is aimed at keeping fuel production high and bolstering domestic energy security, according to people familiar with the matter. It will not, however, support profit margins at plants badly squeezed by rising crude prices and US waivers that have widened access to sanctioned supply.