Iran cuts fuel exports to China by 67 percent

Photo: Iran cuts fuel exports to China by 67 percent / Iran

Iran, once the second-biggest supplier to China, has cut fuel exports by 67 percent compared with earlier this year, Bloomberg reported.

Iran has cut exports to about 200,000 tons a month since October from 600,000 tons earlier this year, an official at National Iranian Oil Co. said Dec. 12, asking not to be identified because of company rules.

Volumes are unlikely to increase before February, he said.

China's fuel oil imports from Iran fell to 30,000 tons in November, from as much as 526,203 tons in May, the most in almost nine years, according to customs data.

Iran was China's biggest source of fuel oil in May after Russia, accounting for about 19 percent of overseas supplies. The nation's total fuel oil purchases fell to 1.47 million tons last month from 2.83 million in May.

According to some market consultants, easing of international sanctions against Iran is unlikely to bring more fuel oil from the country into Asia.

The U.S. and its allies agreed last month to scale back measures targeting Iran's exports in return for it curbing its nuclear program.

The EU lifted a ban on insurance for tankers that carry Iranian crude and the U.S. said it will refrain from forcing buyers to cut purchases further. Restrictions on importing the nation's oil remain in place.

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