Iran oil exports slow as Chinese refineries turn to cheaper crude

Iran’s oil exports have slowed despite a recent surge during a temporary truce with the United States, with growing volumes now accumulating on tankers as demand weakens, according to market participants and shipping data.

The slowdown reflects a shift by China’s independent refineries toward cheaper crude from Iraq, the United Arab Emirates and Qatar, undermining the competitiveness of Iranian supplies.

Reuters reported that the reimposition of U.S. sanctions is heightening the risk of a buildup of unsold cargoes, many of which are already being directed toward Asian markets.

Refiners in China’s Shandong province have in recent weeks purchased between 16 million and 20.5 million barrels of crude from Qatar, Iraq and the UAE, traders said. These suppliers have offered discounts of $5–8 per barrel against Brent crude, compared with narrower discounts of $2–3 for Iranian oil.

Additional factors weighing on sales include mourning events in Iran and disruptions to shipping through the Strait of Hormuz, both of which have affected trade flows.

Data from Vortexa Analytics indicate that Iran exported approximately 30 million barrels of oil between mid-June and early July, equivalent to about 1.35 million barrels per day. Separately, United Against Nuclear Iran (UANI) reported that 52 tankers carrying oil and petroleum products departed Iran following the announcement of a ceasefire, with combined volumes of around 62 million barrels.

By Tamilla Hasanova