Iran seeks higher prices for its crude going to its top customer, China, and has been withholding some supply. According to reports, Iran has sought discounts of $5 to $6 per barrel for its light crude for December and January compared to Dated Brent.The deals for December and January were agreed in November at prices of around $10 per barrel discounts to Brent.

As per reports, Higher prices for Iranian crude would squeeze profit margins for the independent refiners who haven’t shied away from buying supply from Iran after the U.S. sanctions were re-imposed. Moreover, the increase in Iran’s crude prices for Chinese customers could also reduce the availability of cheap crude supply for the world’s largest crude oil importer, which is saving billions of U.S. dollars by purchasing sanctioned oil.

 

Source: https://oilprice.com/Latest-Energy-News/World-News/Iran-Withholds-Oil-Deliveries-As-It-Seeks-Higher-Prices-from-China.html