China's state-owned refiners are considering resuming Iranian oil purchases, but competing alternative supplies and falling domestic fuel demand will temper their interest, said several industry sources, as reported by Reuters,
Any purchases would be the first since 2019 when Sinopec and PetroChina bought Iranian crude shortly after US President Donald Trump re-imposed sanctions on Tehran's petroleum exports in his first term.
PetroChina and Sinopec are examining the banking, insurance and shipping considerations needed to resume their Iranian transactions, said three of the sources, officials at Chinese state oil companies who spoke on condition of anonymity as the subject is sensitive.
The decision follows Monday's US waiver allowing global customers to buy Iranian oil and petrochemical products and settle in US dollars after the memorandum of understanding signed last week that ended the US-Israeli war with Iran.
"Let's see who might be the first to eat the crab," said one of the three sources, using a Chinese idiom referring to the first person to take up something new, who also pointed out there is no shortage of oil as exports from Saudi Arabia, Kuwait and Iraq are rising.
It is also unclear which banks could provide financing and clearing for the deals and if Iran has the shipping capacity to deliver the cargoes, the source added.