Shipments of Iranian Oil to Asia Falling — Reuters

Large Asian importers of crude oil like China and India have been cutting back on purchases of Iranian crude, substituting instead crude from North and West Africa, according to an exclusive report from Reuters. So far in the first quarter of the year, shipments from West Africa to Asia have totaled about 1.82 million barrels/day, compared with an average of 1.57 million barrels/day in 2011.

China has not supported the US-led effort to impose sanctions on Iran to get the country to halt its nuclear development program. China is trying to drive a much harder bargain on price with the Iranians. Iranian crude exports to China have been cut in half compared with year-ago levels. If the sanctions are imposed by the European Union and some Asian countries like Japan and Korea, Iran will need to find other buyers. China is willing, but will demand — and ultimately very likely get — lower pricing.