OIL: Some China Refiners Set to Shun Iranian Oil: EA

China’s larger independent refiners are likely to “imminently” shun Iranian oil because of their exposure to the U.S. banking system according to Energy Aspects analysis. 

• EA said that the Chinese plants had only started buying Iranian oil under guidance that sanctions wouldn’t be enforced by the Biden administration.
• The Biden administration was thought to be turning a blind eye to sanctions in a bid to keep oil prices under pressure as it faced a domestic inflationary battle.
• The Chinese refining sector is now under significant pressure to consolidate and the government might be “willing to sacrifice the teapots to score some easy points against Trump by clamping down Iranian imports” EA said.
• Chinese refiners have been seen turning more towards Middle East and WAF barrels recently as imports have surged for stockpiling.