2025-10-14 06:40:00
U.S., CHINA SANCTIONS
BLOOMBERG - October 13, 2025 - US sanctions on a key Chinese oil import terminal are redirecting crude flows and threatening run cuts at several state-owned refineries.
Last week’s blacklisting of the Rizhao Shihua Crude Oil Terminal, which handles about 9% of China’s crude imports, could force run cuts of up to 250,000 barrels a day at a handful of refineries near the port in Shandong province, analysts from Energy Aspects said in a research note. Several refineries owned by state-run Sinopec are likely to be hardest hit as they’re connected to the facility by pipeline.
Targeting Rizhao and other port infrastructure represents an escalation of the US crackdown on those involved in the China-Iran energy trade, beyond just restricting independent refiners known as teapots that often rely on cheaper oil to eke out margins. The Rizhao terminal is partly owned by Sinopec through its subsidiaries, and is the refiner’s biggest entry point for foreign crude.
A spokesperson for Sinopec, officially known as China Petroleum & Chemical Corp., didn’t immediately comment on any impact the sanctions might have.
Tankers already appear to be changing course to avoid the terminal. Spherical — which is carrying about 2 million barrels of Brazilian crude — switched its destination from Rizhao to Caofeidian in Hebei province on early Monday morning, according to tanker-tracking data compiled by Bloomberg.
The blacklisted terminal operator imported more than 1 million barrels a day last year, with Iran accounting for about 189,000 of that, data from Kpler show.
Sinopec’s 200,000 barrel-a-day Luoyang refinery is expected to be hardest hit, as it relies heavily on crude oil supplied via a pipeline from the terminal, according to Energy Aspects. Other Sinopec refineries such as Yangzi and Jinling, which are connected via pipeline to Rizhao port, could also face supply disruptions.
“The main impact falls on state-run refiners that receive non-sanctioned crude through the terminal, as sanctioned oil accounts for only about less than 25% of the terminal’s crude imports,” said Emma Li, a senior market analyst at Vortexa.
The overall impact on China’s crude demand should be short-lived as traders re-route cargoes to other ports, Energy Aspects said.
-----
Earlier:
2025, September, 24, 06:10:00
U.S. ENERGY DOMINANCE
In Brussels, Belgium, Secretary Wright met with members of the European Parliament and Commission, stressing the benefits of U.S.-E.U. energy partnerships, ending Europe’s reliance on Russian oil and gas, and the need to shift away from policies that lead to more expensive energy and inhibit long-term energy agreements in the EU.
2025, August, 15, 06:55:00
RUSSIAN OIL FOR CHINA RISE
Russia has often raised crude exports to China via the Arctic route during the navigation season, when voyage time to the world's top seaborne crude importer is shorter and freight costs lower.
2025, August, 5, 06:30:00
U.S., CHINA, IRAN SANCTIONS
Among the sanctioned entities is the Zhoushan Jinrun Petroleum Transfer Co., a China-operated oil terminal located within the greater Zhoushan port area.
2025, May, 22, 06:40:00
U.S. LNG FOR CHINA
With prices linked to Henry Hub, market sources suggested that the cargoes are likely coming from the US. This is likely the first US LNG SPA signed by a Chinese company since the announcement of China's tariffs on US LNG.
2025, April, 24, 06:55:00
U.S. LNG FOR CHINA DOWN ANEW
Overall delivery of US LNG shipments in the first quarter of 2025 fell by 70%, according to Chinese official custom data released on Sunday.
2025, April, 17, 06:50:00
CHINA BUYING IRANIAN OIL
On April 10, the US Department of the Treasury sanctioned nearly 30 oil tankers involved in shipping Iranian crudes, as well as a Chinese storage terminal.
2025, March, 19, 06:40:00
CHINA WITHOUT U.S. LNG
China is also boosting its energy security by focusing on producing more gas at home, which will help to curb import growth.
2024, November, 21, 06:45:00
CHINA, RUSSIA PIPELINE COMPLETED
The east-route pipeline is connected to the Power of Siberia pipeline which transports Russian gas to China. A second project, Power of Siberia 2, is currently under consideration and could have a capacity of 50 bcm/year.