RoydadNaft –  Iranian oil has become an attractive option for China’s independent “Teapot” refineries following the ceasefire agreement, as they seek immediate cargoes of Iranian crude.

According to Roydad Naft, citing Reuters, three trade sources confirmed that several independent Chinese refineries (known as Teapots), which recently received new crude import quotas from Beijing, are now actively looking for prompt shipments of Iranian crude oil after Wednesday’s sharp drop in oil prices.

Brent crude fell below $100 per barrel on Wednesday — its lowest level since March 11 — following U.S. President Donald Trump’s announcement of a two-week ceasefire with Iran, conditional on the immediate and safe reopening of the Strait of Hormuz.

Market Reaction and Pricing

One trader close to Iranian oil trading said: “There were multiple price inquiries this morning because Brent has dropped into the $90 range.” However, another trader noted that while inquiries have been made, only limited deals have been concluded so far, as current prices remain significantly higher than pre-war levels.

China’s New Import Quotas

On Friday, April 3, China allocated new crude import quotas of approximately 55 million tons (equivalent to 401.5 million barrels) to its independent refineries to encourage higher production. These quotas are expected to boost crude imports by the world’s largest oil importer and help ease supply.

In recent months, Chinese independent refineries had announced production cuts due to the high prices of Russian and Iranian oil — which had risen after sanctions — as well as persistently weak domestic fuel demand.