Iran Oil Hoard at Sea Shields China’s Refiners From US Blockade

A hoard of Iranian crude on tankers at sea and robust onshore stockpiles in China will provide a cushion for the nation’s independent refiners should a US blockade of the Strait of Hormuz choke off flows.

There are about 38 million barrels of Iranian oil on vessels in Asia, with more than a third of the ships anchored in the Yellow Sea off the Chinese coast, data compiled by Kpler Ltd. shows. Overall crude inventories in Shandong province — home to most of the country’s independent processors known as teapots — have also swelled and are near the highest this year, according to OilChem.