China sharply cuts imports of Iranian oil

Chinese imports of Iranian oil dropped by about one-fifth in May, falling to 1.1 million barrels per day, Bloomberg reported.

“The U.S. is tightening sanctions, making logistics more complicated. Demand has also decreased, mainly due to delayed maintenance at Chinese refineries, which is now expected to continue until July,” said Emma Li, a senior analyst at Vortexa.

Officially, China does not report imports of Iranian crude. The main buyers remain independent Chinese refineries.

Additionally, lower prices for competing Russian grades, particularly Sokol and Novy Port, have made Iranian barrels less attractive, Vortexa added.

Meanwhile, Sinopec, China’s largest state-owned oil company, resumed purchases of Russian crude after a pause in March to reassess sanction risks.