China's June Oil Imports from Iran Soar Amid Increased Deliveries

According to a recent report from Reuters, China’s oil imports from Iran saw a important increase in June, driven by heightened shipments prior to the recent tensions between Israel and Iran, along with rising demand from independent refineries. during the first three weeks of June, China imported over 1.8 million barrels per day (bpd), marking an unprecedented level based on data from ship-tracking service Vortexa.

kpler’s analysis indicated that as of late June, China’s average imports of Iranian oil and condensate stood at approximately 1.46 million bpd—up notably from one million bpd in May.This surge can be attributed to an uptick in available supplies due to floating storage after export loadings reached a multi-year peak of 1.83 million bpd in May.

Typically, it takes about a month for Iranian crude to arrive at Chinese ports; thus, the robust loadings earlier this month suggest that import levels are likely to remain high moving forward. Xu Muyu, Kpler’s senior analyst, noted that independent Chinese “teapot” refineries—the primary purchasers of Iranian oil—are experiencing strong demand as their inventories dwindle.

Additionally, there is speculation that any easing of U.S. sanctions on Iranian oil could further enhance Chinese purchases. While U.S. President Donald Trump reaffirmed his commitment to maintaining pressure on iran regarding its oil sales recently, he hinted at possible leniency in enforcement measures aimed at helping Iran recover economically.

In terms of pricing dynamics for this week, traders reported that Iranian Light crude was being sold roughly $2 below ICE Brent prices for deliveries scheduled between late July and early August—a notable betterment compared to previous discounts ranging between $3.30 and $3.50 per barrel for July shipments.

Concerns about potential disruptions through the Strait of Hormuz—a vital shipping route—have contributed to these tighter price margins following increased tensions after U.S.-led airstrikes against Iranian nuclear facilities last weekend; however, fears eased when both nations agreed to a ceasefire shortly thereafter.

Despite these fluctuations in pricing and geopolitical concerns affecting market sentiment—with ICE Brent crude futures hovering around $68 per barrel—the overall trend indicates some slowing down in Iran’s total crude exports during late june due primarily to ongoing military actions by israel and the United States.

As reported by various vessel tracking firms including Kpler and Petro-Logistics, while initial export figures were promising with averages reaching up towards 2.2 million bpd earlier this month post-Israeli attacks on June 13th—there has been a noticeable decline since then although operations have largely continued without major interruptions.

A significant drop-off in exports from OPEC’s third-largest producer could tighten global supply chains further down the line wich may ultimately support higher oil prices globally moving forward.