"Financial institutions should take steps to ensure they are not facilitating transactions involving designated teapot refineries, or other teapot refineries that may be importing Iranian oil, because this may expose the financial institutions to sanctions," Treasury's sanctions enforcement arm, the Office of Foreign Assets Control (OFAC), said in an alert.
OFAC over the past year has imposed sanctions on five Chinese independent refineries, most recently the 400,000 b/d Hengli Dalian refinery. OFAC issued a licence authorising Hengli Dalian's partners to wind down business with the refinery, valid until 12:01am ET on 24 May (4:01GMT).
The UAE said it will withdraw from Opec and the wider Opec+ alliance from 1 May, marking a major shift in its oil policy.
The decision follows a review of production strategy and capacity plans. The UAE said it wants greater freedom to respond to global oil demand in line with its national interest.
The move comes during heightened energy market volatility, caused by disruption to shipping through the strait of Hormuz that has constrained Mideast Gulf oil and gas exports and reshaped supply flows. The UAE said exiting Opec+ will allow it to better align its crude output with market conditions.
Leaving the alliance removes formal quota constraints, allowing the UAE to raise production more freely, albeit gradually and in line with demand.
Ice Brent futures were largely unchanged in early Asian trading hours, as the US stepped up its sanctions enforcement to clamp down on Iranian trade.
The Ice front-month June Brent contract was at $111.03/bl at 04:00 GMT, down by 23¢/bl from its settlement on 28 April when it ended $3.03/bl higher.
The Nymex front-month June crude contract was at $99.30/bl, lower by 63¢/bl from its settlement on 28 April when it ended $3.56/bl higher.
The US Treasury Department on 28 April urged financial institutions globally to scrutinise any transactions with independent refiners in Shandong, China, warning of potential breaches of US sanctions against Iran.
"Financial institutions should take steps to ensure they are not facilitating transactions involving designated teapot refineries, or other teapot refineries that may be importing Iranian oil, because this may expose the financial institutions to sanctions," Treasury's sanctions enforcement arm, the Office of Foreign Assets Control (OFAC), said in an alert.
OFAC over the past year has imposed sanctions on five Chinese independent refineries, most recently the 400,000 b/d Hengli Dalian refinery. OFAC issued a licence authorising Hengli Dalian's partners to wind down business with the refinery, valid until 12:01am ET on 24 May (4:01GMT).
The UAE said it will withdraw from Opec and the wider Opec+ alliance from 1 May, marking a major shift in its oil policy.
The decision follows a review of production strategy and capacity plans. The UAE said it wants greater freedom to respond to global oil demand in line with its national interest.
The move comes during heightened energy market volatility, caused by disruption to shipping through the strait of Hormuz that has constrained Mideast Gulf oil and gas exports and reshaped supply flows. The UAE said exiting Opec+ will allow it to better align its crude output with market conditions.
Leaving the alliance removes formal quota constraints, allowing the UAE to raise production more freely, albeit gradually and in line with demand.
By YouLiang Chay