China’s Iranian Oil Imports Surge in June

Singapore: According to analysts, China’s imports of Iranian oil saw a significant increase in June. This surge occurred as shipments were expedited ahead of recent regional tensions and due to heightened demand from independent refineries.

The world’s leading oil importer and primary purchaser of Iranian crude imported over 1.8 million barrels per day (bpd) between June 1st and 20th, according to data from ship-tracker Vortexa. This figure represents a record high based on Vortexa’s records.

Data from Kpler indicated that China’s average daily imports of Iranian oil and condensate reached 1.46 million barrels for the month up to June 27th, a rise from May’s figure of one million bpd.

The increase in imports is partially attributed to the accelerated offloading of substantial quantities of Iranian oil that had been in transit, following a multi-year high in export loadings from Iran, which reached 1.83 million bpd in May, Kpler’s data revealed.

Typically, it takes at least a month for Iranian oil to arrive at Chinese ports.

Analysts from both Kpler and Vortexa suggest that strong loading activity in May and early June indicates that China’s imports from Iran are likely to remain high.

Xu Muyu, a senior analyst at Kpler, noted that independent Chinese “teapot” refineries, the primary consumers of Iranian oil, have also exhibited robust demand for these discounted barrels due to the depletion of their stockpiles.

She also mentioned that a potential relaxation of the U.S. President’s policy regarding sanctions on Iranian oil could further stimulate Chinese purchasing.