,  the world’s largest refiner, plans to reduce its refining runs by 5% this month due to supply disruptions and is seeking government approval to access state oil reserves, company President Zhao Dong said on Monday.

The state-run Chinese refiner said it does not intend to purchase Iranian crude oil despite a recent U.S. sanctions waiver, citing concerns about payment mechanisms and the condition of vessels carrying the oil.

On Friday, U.S. Treasury Secretary Scott Bessent issued a 30-day sanctions waiver for Iranian oil already at sea, a move aimed at bringing approximately 140 million barrels of oil to global markets to ease supply constraints. The waiver applies to crude already in transit.

Zhao said Sinopec was evaluating the risks associated with purchasing Iranian oil and “basically won’t buy” it. He noted that complications remain due to questions about payment methods, as financial sanctions on Iran remain in effect, and concerns about the aging shadow fleet vessels carrying much of the oil.

Sinopec is particularly vulnerable to the near-closure of the Strait of Hormuz, as the refiner sources roughly half of its crude oil requirements from the Middle East. The company is currently purchasing Saudi oil from Yanbu and sourcing supplies from regions outside the Middle East, according to a senior executive.

The refiner is pushing for permission to tap China’s state oil reserves to address supply challenges. Earlier this month, Reuters reported that Beijing had rejected a request to access 13 million tons of reserves.
Source: Investing.com