Disruption in Iran’s oil exports to China rejected
The head of the Iran-China Joint Chamber of Commerce on Saturday rejected as “fabrication” a media report that Tehran had withheld oil exports to Beijing, demanding higher prices from its top client,
Citing refinery and trade sources, Reuters said on Friday that Iranian sellers had told Chinese buyers early last month that they were narrowing discounts for December and January deliveries of Iranian Light to between $5 and $6 a barrel below dated Brent. Those deals had been struck in November at discounts around $10 a barrel, traders said.
An executive at a Chinese company that procures direct from Iran said the OPEC producer was “holding back some shipments,” leading to a “stalemate” between Chinese buyers and Iranian suppliers.
Reacting to the Reuters report, Chairman of Iran-China Joint Chamber of Commerce Majidreza Hariri said the oil trade had not stalled, though he confirmed that Tehran’s discounts to Beijing had been declining over the past year, IRNA reported.
He said that Iran’s oil exports were at their highest, and “fabricated news” would have no effect on the trade.
Hariri refused to give details about Iran’s discounts to China, saying such information was “secret,” and that disclosing it ran counter to the interests of the country amid sanctions.
Alireza Sotoudeh, an energy expert, also believes that given the rise in China’s refining capacity and the increase in Iran’s oil production, the reports on halting the country’s exports to China are not true.