Chinese state-owned oil companies are reportedly considering resuming imports of Iranian crude oil.

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Jinse Finance reported on June 25 that, citing multiple industry insiders, Chinese state-owned oil refiners are considering resuming purchases of Iranian crude oil, but competition from other supply sources and declining domestic fuel demand will dampen their buying appetite. If oil purchases are confirmed, it would be the first time since 2019.

Three sources said that PetroChina and Sinopec are currently evaluating the banking, insurance, and shipping conditions required to resume transactions with Iran. This decision came after the US issued an exemption on Monday, allowing global customers to buy Iranian oil and petrochemical products and settle deals in US dollars. Earlier, a memorandum of understanding signed last week ended the war between the US and Israel against Iran.

One of the sources said there is no shortage of oil at present, as crude exports from Saudi Arabia, Kuwait, and Iraq are increasing. The source added that it remains unclear which banks can provide financing and clearing services for these transactions, and whether Iran has sufficient shipping capacity to deliver the cargoes.

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