Commodities News

China’s Iran Oil Imports Drop as US Penalties Bite

China’s crude oil imports from Iran declined nearly 60% in June from a year ago, Chinese customs data confirmed on Saturday, following the end of a reservation on U.S. sanctions at the start of May.

Crude cargo from Iran were 855,638 tonnes last month, or 208,205 barrels per day (bpd), information from the General Administration of Customs confirmed. That in contrast with 254,016 bpd in May.

Based on Refinitiv Oil Research assessments, a sum of 670,000 tonnes, or about 163,000 bpd, of Iranian crude oil was released in June at Tianjin in north China and Jinzhou in the northeast.

Refinitiv Oil Analysis also confirmed another 430,000 tonnes of Iranian crude oil was released in July at Jinzhou and Huizhou in south China.

National Iranian Tanker Agency controls all of the sent vessels.

It’s not clear who owns the loads nor if any purchaser has been arranged. State oil corporations have since May stopped importing Iranian crude oil, due to concerns about U.S. penalties.

Jinzhou, Tianjin, and Huizhou are all where Chinese oil corporations control refineries and commercial storage tanks. They’re additionally the sites where China’s authorities’ emergency stocks are held.

For the initial six months of the year, China’s imports of Iranian crude oil dropped 30% on a year earlier to 11.03 million tonnes, i.e., 447,327 bpd.

Saudi Arabia surpassed Russia to become the nation’s prime supplier in June with 7.72 million tonnes, or 1.88 million bpd, up 84.1% from the previous year and in contrast with 1.11 million bpd in May.

Arrivals from Russia touched 7.15 million tonnes, i.e., 1.74 million bpd, up 45.5% from a year earlier and in contrast with 6.36 million bpd in May.

Beijing has not advanced tariffs on the U.S. oil despite raising taxes on U.S. coal and LNG.

Danielle Hollman

By Danielle Hollman

Danielle is a Market expert with vast experience in commodities. She also has expertise in marketing and international business communication in her career portfolio. She has worked with several entrepreneurs, financial services firms, and media houses. Danielle joined FBI Market News in 2018. Now, she is leading the Commodity column.

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