WANA (Apr 08) – Following the announcement of a two-week ceasefire between Iran and the United States, independent Chinese refineries have reportedly accelerated their search for immediate shipments of Iranian crude oil.

 

According to reports, several trading sources said that Brent Crude fell below $100 per barrel, reaching its lowest level since March 11 after the ceasefire announcement. The price drop has encouraged independent Chinese refiners to resume procurement after weeks of caution.

 

China recently issued a new import quota of 55 million tons of crude oil (around 401 million barrels) to independent refiners, aimed at boosting production and ensuring domestic fuel security. Authorities have also urged refiners to maintain output levels despite reduced profitability.

 

Local consultancy SCI reported that average refining losses in Shandong reached 143 yuan (around $21) per ton in March. Although lower Brent prices have led to increased inquiries, no major deals have been finalized due to the still-wide price gap between Iranian crude and pre-conflict levels. Before the conflict, Iranian light crude traded at a $10 discount to Brent, while current prices are near parity or slightly higher.

 

China remains the largest buyer of Iranian oil, accounting for around 80% of exports, and continues to prioritize energy supply stability.

 

Economists note that the ceasefire, reportedly linked to conditions including the secure reopening of the Strait of Hormuz, has not only affected oil prices but also restored some confidence in global markets. Since nearly 20% of the global oil supply passes through this route, any disruption poses significant risks to global energy security.