China's Independent Refiners Trim Iranian Oil Purchases as Unsold Cargoes Pile Up at Sea

Oil-market reports for July 2026 indicate that China's independent "teapot" refiners, concentrated in Shandong province and the main buyers of Iranian crude, have trimmed their Iranian purchases and turned to cheaper oil from Qatar, Iraq and the UAE. Those rival cargoes, for August to September delivery, were offered at discounts of about $5 to $8 a barrel to Brent.

Tanker-tracking data cited in the reports put China's Iranian oil imports this month at around 556,000 barrels per day, described as the lowest since January 2023. After Persian Gulf producers resumed exports following the reopening of the Strait of Hormuz in late June, some Iranian crude has been left unsold at sea, and Iranian sellers have offered discounts of more than $10 a barrel to keep buyers. Softer Chinese demand could weigh on Iran's foreign-currency revenue.