Iran’s oil exports to China hit new high despite US sanctions
Iran’s oil exports to China reached 1.91 million barrels per day in March, a 11.9% increase compared to the previous record of 1.71 million barrels per day in August 2024, S&P reported Saturday.
This record is also 19.5% higher than the February imports of 1.6 million barrels per day.
Iran’s oil exports to China in March hit a new record high since US President Donald Trump imposed the so-called “maximum pressure” campaign against Tehran and pulled his country out of the 2015 nuclear deal, known as the Joint Comprehensive Plan of Action (JCPOA).
Trump signed an executive order to restore the maximum pressure campaign on Iran when he returned to the White House with the main goal of “slashing Iranian oil exports to a trickle.”
Washington has been adding oil tankers that allegedly transfer Iranian oil to world markets to its list of sanctions.
Improved logistics, including drawing from floating storage in Malaysian waters, as well as competitive pricing compared to alternative feedstocks, contributed to the rise in Iran’s oil imports to China, according to informed sources, ISNA reported.
However, market analysts say that the import trend in April may be affected due to the hostile actions of the US in recent weeks.
While some private refineries have adopted a wait-and-see approach amid escalating geopolitical risks, traders expect imports to remain high in April due to Iran’s competitive oil pricing at around seven million tons (1.91 million barrels per day).
“If Iran’s oil shipments have better economics than other options, Chinese private refineries will continue to purchase them,” a trade source said.
According to informed sources, Iran’s floating oil storage in Malaysia has decreased as more volumes have been transferred to China.
Traders said that floating storage in March was 426,000 barrels per day, according to Platts, 44% lower than the January and February levels as the transfer to private refineries in Shandong, China, accelerated, according to Kpler.
According to the S&P Global Commodity Insights survey, Iran’s crude oil production proved resilient, reaching 3.23 million barrels per day in February, slightly higher than January, and has remained above three million barrels per day since September 2023.