Analysts: Iran may struggle to clear oil inventories as China cuts imports and OPEC+ raises output target

According to CNBC, analysts said Iran is likely to face challenges clearing its oil inventories even after restrictions on its energy imports are lifted, as China—traditionally its biggest buyer—adjusts its energy strategy and additional supply enters the market. China’s crude imports fell 29% in May from a year earlier to 7.82 million barrels per day, the lowest since February 2018, according to Wind Information, while Bloomberg reported Chinese crude imports from Iran more than halved in June to about 654,000 barrels a day versus the prior month. Separately, OPEC+ agreed to add 188,000 barrels a day to its output target for August, bringing total quota additions since the war began to 940,000 barrels a day, according to a United Overseas Bank report. Axi’s Tiago Lacerda said Iran has shipped more than 40 million barrels since the U.S. lifted its naval blockade, while Russian exports have surged to record levels. FGE NexantECA’s Fereidun Fesharaki also warned Iran has said “free” passage through the Strait of Hormuz is only available for 60 days, after which it would impose tiered tolls.