Surging Oil Imports: China's Strategic Moves Amidst Geopolitical Tensions

China's oil imports from Iran saw a significant increase in June, driven by growing demand from independent refineries and improved shipment speeds ahead of recent conflicts between Israel and Iran, analysts have reported. Ship-tracker Vortexa noted that China imported over 1.8 million barrels per day from June 1-20, marking a new record.

Kpler's data reflected that China's Iranian oil and condensate imports averaged 1.46 million bpd by June 27, a jump from May's one million bpd. This rise was partly attributed to a surge in available supplies from floating storage, as May saw Iran's export loadings reach a multi-year high of 1.83 million bpd, according to Kpler data.

Independent 'teapot' refineries in China, major buyers of Iranian oil, were experiencing strong demand due to depleting stockpiles, Kpler's senior analyst Xu Muyu remarked. The potential relaxation of U.S. sanctions on Iranian oil could further amplify Chinese imports. Despite U.S. President Donald Trump's ongoing 'maximum pressure' campaign, a possible easing of enforcement has been hinted to assist Iran's rebuilding efforts, further influencing the global oil market.

(With inputs from agencies.)