China reportedly continued to import large quantities of cheap Iranian oil in March, and the quantity may reach a new high, far exceeding that of other sources of crude oil.
An analyst from the Eurasian Group, a political risk consulting firm, said that Iran’s oil exports to China “brought even greater challenges to the US sanctions regime”.
Reuters reported last month that despite the United States imposing oil sanctions on Iran and requiring countries to stop importing oil from Iran, China still imported a large amount of Iranian oil at the beginning of this year, a record amount.
Traders and analysts say that close to 1 million barrels of Iranian crude oil may arrive in China every day this month, which is almost half of the largest exporter Saudi Arabia’s supply to China in the first two months of this year.
A senior analyst at Refinitiv said, “The trend seems to continue, but the buying interest is fading due to high port inventory and ample supply.”
A trade source familiar with the movements of Iranian ships said that 30 million barrels of cargo were shipped to China in March, and the president of SVB Energy International estimated that Iranian oil exports have exceeded 1 million barrels per day this month.
Analysts said that Iran’s large export of oil to China is also a key factor in the global Brent crude oil price decline from US$70 per barrel.
Before the meeting of the Organization of Petroleum Exporting Countries and its allies (OPEC+) on April 1, the energy analysts of Restech stated that Iran’s crude oil exports have surged recently, especially crude oil exports to China, and the release of stocks has caused the oil market to weaken. , Weakened OPEC+’s efforts to restrict supply, causing prices to fall for the third consecutive week.
China is the world’s largest oil importer.