Iran (IMNA) -China "will become thirstier for Iranian oil" in the coming months, according to Homayoun Falakshahi, an analyst with Kpler, a significant worldwide energy data and analytics organization, in part because of a probable decline in Russian supply.
In an interview with Iran's ILNA news agency, Falakshahi stated, "Our estimate is that Russia's domestic demand will increase over summer months and this can negatively impact this country's exports, including to China."
The remarks come as reports from international tanker-tracking services, including Kpler, and statements by Iranian Oil Ministry officials have suggested that Iran's oil exports averaged at least 1.6 million barrels per day (bpd) in May, a level not seen since October 2018, when Iranian shipments fell to record lows as a result of US sanctions.
According to estimates, approximately 1.5 million bpd of Iran's oil exports end up in China, where private refiners purchase the majority of the country's supplies of Iranian oil.
Falakshahi said that Saudi Arabia's willingness to further reduce its oil exports—a move intended to have an impact on world oil prices—would also enable Iran to enhance its crude oil supply to Chinese consumers in the coming months.
In addition, he noted, Saudi Arabia's oil exports to China, which peaked in May at 1.75 million bpd, have stayed steady in June.
According to experts, the recent rise in Iranian oil exports is a clear indication that US sanctions against Iran's petroleum industry have been permanently unsuccessful.
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