More Iranian Oil Tankers Head to China

More Iranian Oil Tankers Head to China
More Iranian Oil Tankers Head to China

An unprecedented volume of Iranian crude oil is set to arrive at China’s northeast Dalian port this month and in early November before US sanctions take effect, according to an Iranian shipping source and data on Refinitiv Eikon.
A source from the National Iranian Tanker Company said the company is shipping more than 20 million barrels of oil to Dalian, Reuters reported. 
“It will be impossible to stop Iran from selling its oil. We have various ways of selling our oil and when the tankers reach Dalian, we will decide whether to sell it to other buyers or to China,” the source said, without elaborating further. 
So far, a total of 22 million barrels of Iranian crude oil loaded on supertankers owned by the NITC are expected to arrive at Dalian in October and November, the data showed. Dalian typically receives between 1 million and 3 million barrels of Iranian oil each month.
Iran, the third-largest producer in the Organization of the Petroleum Exporting Countries, is finding fewer takers for its crude ahead of US sanctions on its oil exports that will take effect on Nov. 4. 
One of 11 Very Large Crude Carriers - Dune - discharged oil into a bonded storage tank at the Xingang section of the Dalian port on Oct. 8, Reuters reported last week, while a second VLCC Dino I switched off its transponder on Oct. 13 near the port. 
The Xingang area is home to several tank farms including commercial and strategic reserves. China National Petroleum Corp and Dalian Port PDA Co Ltd both operate commercial storage in the area, according to information on the companies’ websites. 
Keeping oil in bonded storage gives the cargo’s owner the option of selling the oil into China or to other buyers in the region. 
NITC tankers have now switched off their tracking devices when loading or discharging oil to evade US authorities as the United States will re-impose sanctions on Iran in early November, according to Refinitiv Eikon shipping data. Three of the tankers, set to arrive in China in November, are heading to Changxing Island, the data showed. 
China has never made a secret of its plans to continue buying Iranian crude despite attempts by Washington officials to persuade Chinese refiners to at least reduce their intake. At one point earlier this year, Beijing was said to have agreed not to increase the amount of Iranian crude it buys, but since then the trade row between China and the United States has deepened, casting a shadow over the likelihood of China sticking to its word.


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