Re-published story from July 10th, unchanged text

By Chen Echo, Jonathan Saul and Florence Tan

Singapore/London, July 13 (Reuters) - Iranian oil supplies at sea have been increasing since Tehran ramped up exports during the interim agreement to end the trade war with the United States, but sales are slowing as independent refiners in China switch to cheaper crude from Iraq, the United Arab Emirates and Qatar.

The return of US sanctions last week threatens to deter buyers from purchasing Iranian oil shipped by ship as those shipments reach Asia.

Traders said that independent Chinese refiners have bought between 16 million and 20.5 million barrels of crude oil from Qatar, Iraq and the UAE in the past few weeks, their largest purchases of non-sanctioned Middle Eastern oil since the start of the conflict.

Independent refiners in Shandong account for the bulk of China’s purchases of Iranian crude oil, as Chinese state-owned refiners have largely avoided direct imports since the return of US sanctions on Iran in 2018.

On the other hand, a trader familiar with the purchases of private refiner Xinghong Petrochemical said it bought 12 million barrels of crude oil from Iraq, Abu Dhabi and Saudi Arabia.

Non-Iranian shipments replaced demand for Iranian oil, as rival Middle Eastern producers rushed to resume exports following the reopening of the Strait of Hormuz in late June.

Non-Iranian shipments are priced at discounts of five to eight dollars per barrel below Brent crude futures prices on the Intercontinental Exchange for August and September delivery, and are sold on a delivery basis from European traders such as Mercuria and Vitol, and major state-owned companies including PetroChina International, Zhenhua Oil, and Abu Dhabi National Oil Company (ADNOC).

But several traders active in dealing with independent refiners said discounts on Iranian light crude had not changed much, remaining at $2 to $3 a barrel below Brent crude futures prices on the Intercontinental Exchange, prompting two traders to describe sellers as slow and stubborn.

One senior trader said, "Ironically, Iranian oil has become the most expensive."

Traders noted that the week of funeral ceremonies, which ended on Thursday with the burial of the late Supreme Leader Ayatollah Ali Khamenei, also slowed sales, as offices were closed during the mourning period.

Meanwhile, traffic through the vital waterway slowed again this week following tit-for-tat attacks between the United States and Iran.

Iranian oil tankers are en route.

Data from Vortexa Analytics, which specializes in tracking tankers, indicated that the period from June 15 to July 6 saw the loading of approximately 30 million barrels of Iranian oil, equivalent to 1.35 million barrels per day.

Kpler recorded an estimated 34.5 million barrels of Iranian crude passing through the Strait of Hormuz on 21 tankers between June 14 and July 10.

An analysis by United Against Nuclear Iran concluded that an estimated 60.7 million barrels, averaging 2.17 million barrels per day, were exported in February 2026, a 20 percent increase from January 2026.

The organization noted that this figure fell to 35.7 million barrels in March, averaging 1.136 million barrels per day.

Her analysis showed that since the ceasefire agreement was announced on June 14, 52 tankers loaded with Iranian oil and petrochemical products have sailed, carrying nearly 62 million barrels of Iranian crude and its products.

The analysis also indicated that of those vessels, 15 had reached the Singapore Strait and were heading towards the anchorage area east of the outer boundary of Singapore's port, near the Malaysian state of Johor. Three Iranian-flagged supertankers had already unloaded their cargoes.

“In anticipation of the U.S. Navy potentially resuming its blockade at any moment, Tehran shipped at least 10 million barrels of crude and fuel oil overnight,” TankerTrackers.com said in a post on Thursday.

The US Central Command has not yet responded to a request for comment.

Traders expect Iranian oil sales to rise this week, as independent refiners anticipate discounts of four to five dollars on shipments arriving in August and September.

Kpler data showed that China's imports of Iranian oil since the beginning of the month have reached 556,000 barrels per day, the lowest level since January 2023.