Latest US sanctions on Iranian oil deal blow to China's Sinopec

Vessels may seek alternative ports

Shandong, where independent Chinese refiners are clustered, is the largest destination for oil shipments from sanctions-hit Iran, Venezuela and Russia.

"Compared to the previous round of sanctions on Chinese terminals, the impact could be larger," said Samuel Kong, senior analyst at FGE, which estimates that only 10-20 per cent of the oil imported at Rizhao is from sanctioned sources.

"In the near term, we could see disruptions to discharges around Rizhao, and vessels carrying non-sanctioned barrels might seek alternative ports in Shandong to unload their cargoes."