Asia’s largest buyer of Iranian oil is said to have resumed purchases from the Persian Gulf state following a one-month hiatus, a move that will help allay fears that U.S. sanctions on the OPEC producer will constrain global supplies.
China will start loading the crude again in November after it halted purchases in October, according to people with knowledge of the matter, who asked not to be identified because it’s confidential. The Asian nation was one of a handful that won exemptions from the U.S. to keep importing Iranian oil without falling foul of sanctions, with a waiver allowing 360,000 barrels a day for six months starting November.
Global benchmark Brent crude surged more than 20 per cent after President Donald Trump’s decision to reimpose sanctions on Iran stoked fears of a supply deficit. Prices have since collapsed to their lowest level this year as those concerns eased after the issuance of waivers to eight nations including China, South Korea and India.