China helps offset Iran’s oil sanctions

DUBAI - Reuters

Iran is set to arrest a slide in oil shipments in July as China increases imports to a record high to account for more than half of Iran’s crude exports and prevent a further slump in Tehran’s oil revenues, an industry report said.

Iranian supplies are expected to average 1.084 million barrels a day in July, little changed from 1.094 million bpd of exports in June, in what Geneva-based consultancy Petrologistics said was a preliminary report.

Tehran’s oil exports halved in the four months from February to June because of U.S. and European Union sanctions aimed at discouraging what the West fears is an Iranian program to develop nuclear weapons.
Only four countries are expected to import Iranian oil in July -- China, India, Japan and Taiwan, Petrologistics said, although it is possible a cargo could be diverted to Turkey.

An EU embargo on oil purchases and shipping insurance began at the start of July, and non-EU Turkey has also cut back sharply on Iranian oil.