China Extends Iran Oil Import Cut as Sanctions Mount

(Reuters) Chen Aizhu - China will reduce crude imports from Iran for a second month, sources said on Thursday, as the two remain divided over payment terms for Iranian crude targeted by ever tougher international sanctions. Top Chinese refiner Sinopec is insisting on 90 days to pay for imports, while Iran wants payment in 60 days. The dispute underlines the difficulty Iran will have selling its oil after EU governments on Wednesday agreed in principle on banning its import and as new U.S. sanctions target payments for the country's crude. China is the top buyer of Iranian oil and also the fastest growing major oil importer, putting it in a strong position to negotiate for better terms from Iran. It has been scouring the globe for replacements, snapping up February cargoes from Vietnam, Russia, the Middle East and Africa at high premiums. Refiners in number three buyer Japan on Thursday also expressed concern about being able to secure supplies of Iranian crude, with the country's biggest refiner saying it is looking at possible alternatives.


2012-01-06 00:00:00

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