Chinese refineries will replace Venezuelan crude oil supplies with Iranian product
Heavy oil from Iran is being used as a substitute for Venezuelan crude by China's independent refineries, given the reduced supply since the start of trade with the United States
Due to the decrease in Venezuelan oil shipments to China, following negotiations with the United States, refineries in the Asian country have begun buying heavy oil from Iran.
According to Reuters, “the drop in Venezuelan supply is being offset by the release of Iranian reserves stored in customs tanks and on ships.”
As is known, oil shipments from Venezuela to China have fallen drastically since mid-December, following the blockade of vessels sanctioned by Donald Trump, in addition to the indefinite control of Venezuelan oil sales and revenues imposed since January 3.
The alternative for independent Chinese refineries to Venezuelan crude is Iranian heavy oil, “stored in China and on ships, attracted by discounts of around $12 per barrel compared to ICE Brent.”
M.Pino
Source: finanzasdigital
(Reference image source: Olle August on Unsplash)
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