China Sunsine Chemical Holdings Ltd. (QES.SI)

China's 'teapot' refiners mop up swelling Iranian crude, defying U.S. curbs

Appetite for Iranian crude is growing in China, the world's biggest oil importer, after the extension of supply cuts by Saudi Arabia and Russia boosted global prices, while Tehran is stepping up output and exports despite U.S. sanctions. Although China's "teapots", or small independent refiners, are stocking up on Iran's discounted oil as they exploit robust margins to fill strong seasonal demand, big state refiners are still keeping away. The export surge comes at a time when Washington and Tehran are working on prisoner swaps and ways to free up Iranian funds frozen overseas, leading some traders to speculate a softening of U.S. sanctions on Iranian crude could be in the offing.