Chinese imports of Iranian oil up 20%
Chinese imports of Iranian oil surged by 20% in March, according to recent data. The increase is mainly due to private refineries based in Shandong Province buying 800,000 barrels of Iranian crude oil daily. This figure represents a 20% rise from the previous month’s sales figures, suggesting a favorable outlook towards Iran.
China’s private refineries are increasingly purchasing Iranian crude oil amidst intensifying competition between Chinese and Indian state-owned oil refineries over Russian oil refineries. Iran has been successful in bypassing U.S. sanctions imposed on its oil industry, with its crude oil exports increasing significantly over the past two years.
Prior to the sanctions, China’s daily purchase of Iranian oil was limited to 700,000 barrels per day. However, China’s consumption has witnessed an approximate 50% increase, reaching nearly 15 million barrels per day. This suggests that China has increased its purchase of Iranian oil by 50%, reaching over one million barrels per day.
Iran’s success in the oil sector is due to several factors, including the Iranian president’s visit to China, which helped Iran secure traditional markets and attract new customers. The country’s utilization of the capacity of extraterritorial refineries has also played a crucial role in boosting its oil exports and revenues.
Despite the stringent economic sanctions imposed on Iran, the country has recorded commendable achievements in the export of crude oil, gas condensate, petroleum products, and petrochemicals. The current government’s efficient energy diplomacy and adept handling of restrictions, coupled with diplomatic efforts with countries such as Russia, Iraq, Turkmenistan, Azerbaijan, Armenia, Venezuela, Cuba, Nicaragua, China, Oman, Tajikistan, and Japan, have played a vital role in boosting Iran’s oil exports and production.
The increase in Iran's oil exports to China suggests that the Chinese are seeking to bolster their commercial cooperation with Iran, including crude oil imports. Reports indicate that Iran's oil sales to China amounted to 1.2 million barrels per day last month. According to statistics, Iran's oil exports to China increased by 193% in 2021 and by 168% in 2022 compared to the previous year.
This surge in Chinese imports of Iranian oil has been attributed to the signing of the 25-year cooperation agreement between the two countries and the consolidation of ties between Iran and China following the advent of the current government two years ago. Despite American interventionist policies, China's disregard for the pressure exerted by the United States has facilitated its acceleration of crude oil imports from Iran.