OIL SHOCK: Chinese Refiners Set to Ditch Venezuelan Crude for Iranian Supply — Traders Reveal Why

OIL SHOCK: Chinese Refiners Set to Ditch Venezuelan Crude for Iranian Supply — Traders Reveal Why

OIL SHOCK: Chinese Refiners Set to Ditch Venezuelan Crude for Iranian Supply — Traders Reveal Why

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A major shake-up may be brewing in the global oil trade as Chinese refiners are reportedly preparing to reduce purchases of Venezuelan crude in favor of Iranian supply, according to traders and shipping sources familiar with recent negotiations. If confirmed, the shift could redraw energy flows across Asia, tighten sanctions-sensitive routes, and pile fresh pressure on Venezuela’s already fragile export lifelines.

Why the Sudden Pivot?
Market insiders point to a convergence of price, logistics, and risk that is tilting Chinese buyers toward Iran:

Deeper Discounts: Traders say Iranian barrels are currently being offered at more attractive discounts to benchmark prices, improving refinery margins at a time of soft demand and cautious purchasing.

Logistical Reliability: Despite sanctions, Iran has built stable ship-to-ship networks and routing practices that some refiners view as more predictable than Venezuela’s stop-start export flows.

Crude Quality & Blending: Iranian grades are reportedly easier to blend for certain Chinese refinery configurations, reducing processing costs compared with heavier Venezuelan crudes.

Sanctions Risk Calculus: With enforcement pressure perceived to fluctuate, buyers are reassessing which supply chains carry lower operational and reputational risk at any given moment.

What This Means for Venezuela
A pullback by China—Venezuela’s single most important oil customer—would be a serious blow. Venezuelan exports have relied heavily on opaque trading arrangements and steep discounts to keep barrels moving. Any sustained loss of Chinese demand could force Caracas to cut prices further, store unsold crude, or seek new intermediaries—each option squeezing revenues.

Iran’s Quiet Comeback?
For Iran, the re

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