Crude shipments from Iran to the province of Shandong, home to 1 / 4 of China’s refining capacity, have surged such a lot this month they’re causing congestion at ports and filling up storage tanks.
A petroleum tanker is seen at Qingdao Port, Shandong province, China.
According to traders and analysts, China is gorging Iranian oil whilst other nations await US President Joe Biden to get rid of sanctions on the Islamic Republic.
Chinese imports of Iranian crude will hit 856,000 barrels a day in March, the most in almost two years and up 129% from last month, said Kevin Wright, a Singapore-based analyst with Kpler.
His figures take under consideration oil that’s undergone ship-to-ship transfers within the Middle East or in waters off Singapore, Malaysia, and Indonesia to obscure their origin.
Most refiners and traders are reluctant to get Iranian crude for fear of repercussions which will include being stop from the American banking industry and having cargoes seized by the US. Tehran has used aggressive marketing because it tries to extend export income and boost an economy reeling from the sanctions.
In China, fuel consumption has already recovered to pre-pandemic levels. It’s continuing to grow on the rear of strong factory activity and infrastructure building that left the capital, Beijing, blanketed in smog in the week.
China’s imports of crude oil climbed to an average of 11.1 million barrels a day in January and February, up more than 20% from December, according to Bloomberg calculations.