WANA (Aug 31) – Iran’s oil exports to China have surged to an unprecedented 1.75 million barrels per day (bpd) this month, according to new data from the cargo tracking firm Kpler. This figure surpasses the previous record of 1.66 million bpd set in October 2023 and represents a 50% increase from last month’s 1.24 million bpd.

 

Kepler analyst Miu Shu reports that shipments to the Chinese ports of Rizhao and Dalian have nearly doubled, reaching 342,000 and 132,000 bpd, respectively. This increase is attributed to a slight margin improvement for independent Chinese refiners, known as “teapots,” which now have a stronger incentive to boost production and, therefore, require more raw materials.

Iranian Oil Purchases by Independent Chinese Refineries, According to Kpler/WANA News Agency

Last week, Bloomberg highlighted that China’s oil imports from Malaysia reached a record high, indicating Beijing’s strong demand for discounted Iranian oil. In July, China imported 6.21 million tons of oil from Malaysia—equivalent to 1.47 million bpd—almost three times the average daily production of Malaysia for 2023.

 

The significance of these imports lies in Malaysia’s role as a key hub for transferring and concealing the origin of oil shipments. Officially, China has not purchased Iranian oil since June 2022, but unofficially, imports have set new records. Iranian oil, sold at a $6 discount to Brent crude, is more cost-effective than Russian oil, attracting more independent refiners looking to improve their margins.

 

Importers in Shandong province have been the largest buyers of Iranian crude, reportedly accounting for 70% of the oil purchased from Malaysia. Overall, eight Chinese regions, including Liaoning and Henan, have led in oil purchases from Malaysia since October 2023.

Iran’s Oil Production Hits Six-Year High

WANA (August 04) – According to the Ministry of Oil, a Reuters survey on August 2nd revealed that OPEC’s oil production increased in July, with Iran’s output reaching its highest level in six years.   The increased oil supply from Saudi Arabia and slight production growth in other OPEC member countries offset the voluntary production […]

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