Hengli Petrochemical Seeks Non-Sanctioned Oil Amid US Sanctions

China's Hengli Petrochemical, sanctioned by the US for allegedly purchasing Iranian oil, has acquired at least 2 million barrels of West African crude and is actively seeking additional non-sanctioned oil supplies. The company, which operates a 400,000 barrels-per-day refinery in Dalian, aims to remove itself from the US sanctions list by sourcing entirely non-sanctioned oil. Hengli has denied buying Iranian oil and plans to continue purchasing oil using China's renminbi currency. However, sourcing non-sanctioned oil is complicated due to potential secondary sanctions that deter sellers. The company has reduced its processing rates due to dwindling crude inventories and has faced operational challenges since the US-Israeli conflict with Iran escalated. China's imports of Iranian crude have significantly declined, reaching their lowest levels since September. Hengli's former trading arm in Singapore has ceased operations following the sanctions.

Key Points: • Hengli Petrochemical has bought at least 2 million barrels of West African crude. • The company is seeking to source entirely non-sanctioned oil amid US sanctions. • China's imports of Iranian crude have fallen to their lowest since September.