US sanctions confuse oil markets and force tankers to avoid the route to China

SadaNews - Three giant oil tankers that were heading to the Rizhao port are seeking alternative berths after the United States imposed sanctions on the port, which receives about a tenth of China's oil imports.

Tracking data collected by "Bloomberg" indicates that two Very Large Crude Carriers (VLCCs), capable of carrying up to two million barrels, are showing Ningbo Zhoushan port near Shanghai as their destination, while the third tanker is currently heading towards Tianjin port in the north of the country.

The "Rizhao Shihua Crude Oil Terminal," which was blacklisted by Washington last week for its role in accepting Iranian oil, is located in Shandong province, which is a hub for the refining industry in China.

The "Rizhao" port, partially owned by Sinopec, serves as the main gateway for foreign crude oil imports for the giant company, also known as China Petroleum & Chemical, and is connected to several of its facilities via a long pipeline network.

Alternative destinations for oil tankers

The tanker "Spherical" carries about two million barrels of Brazilian oil, while the tanker "New Vista" is transporting approximately 1.8 million barrels of Abu Dhabi crude, both heading to Ningbo Zhoushan port. Meanwhile, the tanker "Habshan", which is shipping around 1.9 million barrels from Africa, has set its destination to Tianjin port.

In addition to rerouting tankers to alternative ports, cargoes that were destined for Rizhao port could be offloaded onto smaller vessels for transport to Sinopec refineries along the Yangtze River, which usually receive their oil supplies via the pipeline from the port in Shandong province, according to a memo issued by "Energy Aspects" last week.