- Seeking an end run around U.S. sanctions, China are starting to use oil tankers from Iran for most purchases of that country’s crude, Reuters reports, throwing Iran a lifeline while European companies such as Total try to walk away due to fear of U.S. reprisals.
- To safeguard their supplies, refiner Sinopec (SNP +0.7%) and state-owned oil trader Zhuhai Zhenrong have activated a clause in their respective long-term supply agreements with the National Iranian Oil Corp. enabling them to use vessels operated by the Iranian group for nearly all of their imports in a bid to keep supply flowing, according to the report.
- The price for oil under the long-term deals reportedly has been changed to a delivered ex-ship basis from the previous free-on-board terms, meaning Iran would cover all costs and risks of delivering the crude as well as handling the insurance.
- In July, all 17 tankers chartered to carry oil from Iran to China were operated by NITC, carrying 23.8M barrels of crude oil and condensate destined for China, or 767K bbl/day.
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