Chinese Private Refiners Purchase Iran Oil as Market Conditions Change

As competition for Russian oil from China's main state-owned refiners and from Indian purchasers has made Moscow's barrels considerably more costly, a large number of private Chinese refiners in the Shandong region are purchasing growing amounts of Iranian crude.

Iran (IMNA) - According to Emma Li, analyst with data intelligence firm Vortexa Ltd., China's private refiners bought 800,000 bpd of Iranian crude oil and condensate in March, a 20% increase over February.

The expert predicts that imports from Iran into the Shandong province, which is home to the majority of China's private refineries, might remain strong in the upcoming months.

In light of the Russian supply flowing to the state-owned Chinese majors and India's refiners, the private refiners in the world's largest oil importer are now placing greater bets on Iranian crude oil. Russian oil is also less expensive than international benchmarks, although recent hikes in prices are the result of increased competition.

China's top crude oil supplier in January and February was Russia, surpassing Saudi Arabia, which held that position in the previous year, according to figures from the country's customs. In January and February 2023, Chinese imports of crude from Russia increased by 23.8% year over year to 1.94 million barrels per day (bpd), as China intensified the purchase of inexpensive Russian crude oil at discounts to global benchmarks.

Oil Minister Javad Oji recently stated that the country's oil exports will hit a new high in the current Iranian calendar year.

The official noted that oil exports have now increased to their highest level in the previous two years and added, "Considering that the Oil Ministry is one of the primary sources of the country's foreign exchange, in the 13th government, despite the tightening of harsh sanctions, fortunately, by the grace of God and the efforts of our colleagues in the country's oil and gas industries, there are good records in the field of exporting crude oil, gas condensate, and petroleum.

According to the minister, the country's oil export in 1401 was 83 million barrels more than in 1400, and 190 million barrels higher than in 1399.

Despite the detrimental impacts of US sanctions, Iran has increased its oil output and exports in recent months.

News ID 653006

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