Iran oil stuck at sea surges as China's teapots turn to rival Middle East supplies, traders say

Iranian oil supply at sea is increasing after Tehran ramped up exports under an interim US peace deal, but sales are slow. China’s independent refiners are favoring cheaper alternatives from Iraq, the UAE, and Qatar, limiting near-term absorption of Iranian barrels and potentially weighing on Iran-related pricing expectations.

Analysis

Iranian oil supply at sea is increasing after Tehran ramped up exports under an interim US peace deal, but sales are slow. China’s independent refiners are favoring cheaper alternatives from Iraq, the UAE, and Qatar, limiting near-term absorption of Iranian barrels and potentially weighing on Iran-related pricing expectations.