SINGAPORE: China’s Iranian oil imports surged in June as shipments accelerated before the recent conflict in the region 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 (bpd) 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 1.46 million bpd as of June 27, up from one million bpd in May.
The rising imports are fuelled in part by the accelerated discharge of high volumes of Iranian oil on the water after export loadings from Iran reached a multi-year high of 1.83 million 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 Iran imports are poised to remain elevated, Kpler and Vortexa analysts said.
Independent Chinese “teapot” refineries, the main buyers of Iranian oil, also showed strong demand for the discount barrels as their stockpiles depleted, said Xu Muyu, Kpler’s senior analyst.
A possible relaxing of US President Donald Trump’s policy on Iranian oil sanctions could further bolster Chinese buying, she added.
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