EnergyPress: As a new wave of sanctions from the United States, Britain and the European Union target sales of Russian and Iranian oil, trade sources told Reuters that discounts on Iranian oil for Chinese customers have reached their widest in more than a year, reaching as much as $10. Reduced oil import quotas for independent Chinese refiners have also added to the pressure.
According to Energy Press and quoted by Reuters, trading sources said that discounts offered for Iranian crude in recent deals with China have reached more than $8 below Brent, up from around $6 in September and $3 in March. Some buyers have even made offers as low as $10 below Brent to offset the risk of sanctions and potential problems unloading cargo at Chinese ports. According to these sources, the market has been described as directionless and oversupplied. One China-based trader told Reuters: “There is too much supply and the market has no clear direction at the moment.” … … …