News - Middle East: China’s private refiners are expected to increase their imports of Iranian oil amid tensions in Venezuela that have put crude shipments from the country at risk, a report shows.

A Wednesday report by Reuters news agency said that the so-called teapot refiners in China, which normally buy oil from countries sanctioned by the United States, including Russia, Iran, and Venezuela, are expected to raise their imports from Iran in the coming months.

The report said Iranian supplies are set to replace Venezuelan shipments that were halted after the US attacked Venezuela over the weekend in to capture the country’s President, Nicolas Maduro.

Reports suggest Venezuela’s main port has halted crude loadings for Asia since early January, while floating shipments from the South American country would be sufficient to cover roughly 75 days of Chinese demand.

Reuters quoted market analysts as saying that Chinese refiners are likely to switch to Iranian supplies in March and April, among other options, including purchases of sanctioned and unsanctioned oil from other suppliers.

The report said the new Chinese demand for oil could amount to 0.4 million barrels per day (bpd).

It claimed the discounts offered on Iranian heavy crude would suit China’s teapot refiners more than other options.

Iran has been a major supplier of oil to independent refiners in China in recent years, with reports suggesting shipments have exceeded 2 million bpd in the past months.

Venezuela, the world’s largest holder of oil reserves, has seen its exports remain very limited because of ongoing disruptions and sanctions.

US President Donald Trump said on Tuesday that Venezuela had agreed to export up to $2 billion worth of crude to the United States, a claim that has yet to be verified by authorities in Caracas.

Press TV