US blockade renewal coincides with 10% Iranian crude near Singapore
The US has renewed its blockade of Iranian ports, making it tough for Chinese oil refiners to get their usual supply.
Only 10% of the 40 million barrels of Iranian crude sitting near Singapore is still available, and offers for the Iranian Light grade have risen to as much as $3.50 a barrel above ICE Brent this week.
Basically, there's less oil to go around and it's costing more.
Chinese independent refiners face late-September stoppages
China's independent refiners, or teapots, are feeling the crunch, with new shipments from Iran possibly stopping for late-September delivery onwards.
To make things worse, millions of barrels and 22 empty tankers are stuck in the Persian Gulf because of the blockade.
The US is also planning even tougher sanctions on Iran, which could tighten supplies further and add tension to China-US relations.