Falling Shandong Stockpiles Set to Push China's Independent Refiners Toward More Iranian Oil

According to Oilprice.com, in a report published Tuesday, August 11, 2026 (20 Mordad 1405), China's independent refiners, known as teapots, are likely to increase purchases of Iranian crude starting in August, as their stockpiles in Shandong province, the teapots' main base, fell to an eight month low of about 360 million barrels by the end of July. Data from Energy Aspects, cited by Bloomberg, showed the drawdown in July alone was about 35 million barrels, the biggest monthly decline recorded since the firm began compiling the data in 2016. Oilprice.com said China's independent refiners had cut crude imports for most of the recent Middle East war by drawing on reserves and limiting purchases, but are now expected to buy more from Iran as cargoes that left the Strait of Hormuz during a mid-June to early-July window, when the US blockade on Iranian exports was temporarily lifted, become positioned to ship to Asia. According to Chinese customs data, the country's total crude oil imports rose 22 percent from June to average 8.45 million barrels a day in July.