SINGAPORE, Apr 30 (Reuters): Some 20 million barrels of Iranian oil sitting on China's shores in the northeast port of Dalian for the past six months now appears stranded as the United States hardens its stance on importing crude from Tehran.
Iran sent the oil to China, its biggest customer, ahead of the reintroduction of US sanctions last November, as it looked for alternative storage for a backlog of crude at home.
The oil is being held in so-called bonded storage tanks at the port, which means it has yet to clear Chinese customs. Despite a six-month waiver to the start of May that allowed China to continue some Iranian imports, shipping data shows little of this oil has been moved.
Traders and refinery sources pointed to uncertainty over the terms of the waiver and said independent refiners had been unable to secure payment or insurance channels, while state refiners struggled to find vessels.
Another reports from Geneva adds: Iran will continue to export oil despite US pressure aimed at reducing the nation's crude oil shipments to zero, Iran President Hassan Rouhani said in a speech broadcast live on Iranian state TV on Tuesday.
"America's decision that Iran's oil exports must reach zero is a wrong and mistaken decision, and we won't let this decision be executed and operational" Rouhani said.
"In future months, the Americans themselves will see that we will continue our oil exports," he said. Ordinary Iranians are the ones who feel the pressure from US sanctions, Rouhani said.
Meanwhile, oil prices rose 1.0 per cent on Tuesday after Saudi Arabia said a deal between producers to withhold output could be extended beyond June to cover all of 2019.
The comments by Saudi Energy Minister Khalid al-Falih came despite pressure from US President Donald Trump to raise output to make up for a supply shortfall expected from tightening US sanctions against Iran.
Brent crude futures had risen to $72.72 per barrel by 1010 GMT, up 68 cents or 0.94 per cent from their last close.
US crude futures were at $64.10, up 60 cents or 0.95 per cent.
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