A temporary US sanctions waiver on Iranian oil sales is failing to attract orders from major Asian refiners, leaving independent Chinese refineries as the primary destination for Tehran's crude exports.
Trade sources and analysts indicate that despite the regulatory opening, well-stocked buyers across the region are hesitant to engage, limiting the waiver's immediate impact on global supply dynamics.
Instead, the flow of Iranian crude remains concentrated, with China purchasing approximately 90% of Iran's oil exports.
The lack of broad participation means the waiver is unlikely to trigger a significant surge in available supply that could weigh on benchmark prices.
Instead, the flow of Iranian crude remains concentrated, with China purchasing approximately 90% of Iran's oil exports.
Independent Chinese refineries, often referred to as 'teapots,' account for the majority of these imports, continuing to operate as the critical absorption mechanism for sanctioned barrels.
Iran has been actively courting major Asian oil importers to secure crude sales volumes following the United States' announcement of the temporary sanctions waiver.