Iran's Crude Oil Exports to China Decline Amid U.S. Sanctions
Export Decline Overview
Iran's crude exports to China dropped to over 1.1 million barrels daily, a 20% decrease from May 2024.
This represents a fall of about 400,000 bpd compared to April 2024.
Factors Influencing Exports
Tighter U.S. sanctions and refinery maintenance in China are contributing to the decline.
Complex tanker movements and tracking device shutdowns make tracing the oil's origin difficult.
Future Projections
Oil flows from Iran are expected to remain low due to ongoing refinery maintenance through July.
Chinese refiners currently have sufficient inventories of Iranian crude.
Iran-China Trade Dynamics
China is Iran's largest oil client, primarily utilizing private refiners for cheaper sanctioned crude.
Despite sanctions, both countries maintain a mutually beneficial trade relationship.
Nuclear Deal Negotiations
U.S. and Iran are negotiating a potential nuclear deal which could influence sanctions.
Iran remains resistant to halting uranium enrichment as a condition for lifting sanctions.