China’s oil imports from Iran surged in June as shipments accelerated before the recent conflict between Israel and Iran and demand from independent refineries improved, analysts said.
The world’s top oil importer and biggest buyer of Iranian crude brought in more than 1.8 million barrels per day from June 1-20, according to ship-tracker Vortexa, a record high based on the firm’s data.
Kpler’s data put the month-to-date average of China’s Iranian oil and condensate imports at 1.46m bpd as of June 27, up from 1m bpd in May. The rising imports were fuelled in part by an increase in available supplies from floating storage after export loadings from Iran reached a multi-year high of 1.83m bpd in May, Kpler data showed.
It typically takes at least one month for Iranian oil to reach Chinese ports.
Robust loadings in May and early June mean China’s imports from Iran are poised to remain elevated, Kpler and Vortexa analysts said.
Independent Chinese “teapot” refineries, the main buyers of Iranian oil, also showed strong demand as their stockpiles depleted, said Xu Muyu, Kpler’s senior analyst.
A possible relaxation of US sanctions on Iranian oil could further bolster Chinese buying, she added.
US President Donald Trump said on Wednesday that Washington had not given up its maximum pressure campaign on Iran – including restrictions on Iranian oil sales – but signalled a potential easing in enforcement to help the country rebuild.
For this week, Iranian Light crude oil was being traded at around $2 a barrel below ICE Brent for end-July to early-August deliveries.
&uuid=(email))