Iranian oil shipments to China have more than tripled over
the past three years despite the US sanctions on the country and the increase
in Russia’s shipments to the Asian country, data released by data analytics
firm Kepler show.
According to the data Iranian crude exports to its major
trade partner have been hovering around one million barrels per day (bpd) in
2023, while the figure was roughly 325,000 bpd in 2020.
Iranian oil shipments to China have been on upward
trajectory since 2019. In 2021 the exports reached 585,000 bpd and in 2022 the
figure was reported at 766,000 bpd.
The International Energy Agency (IEA) in a recent report
titled "Oil 2023" confirmed Iran's daily export of one million barrels
oil to China saying, “Despite severe financial restrictions, Iran managed to
increase its crude oil production by about 140,000 barrels per day in 2022 to
an average of 2.5 million barrels per day. It seems that Tehran has maintained
its crude sales to China, which has been around one million barrels per day
since the third quarter of last year.”
Iranian oil production also increased in the current year,
in May the country’s oil output reached 2.9 million bpd, 350,000 bpd more than
in 2022.
Back in April, Bloomberg reported that Chinese private
refineries are buying more Iranian oil despite the rising competition for
supplies from Russia.
“The teapot refineries are prioritizing the flows, with
Russian supplies getting more pricey as mainstream buyers such as state-owned
Chinese refiners and Indian processors take a greater share,” the report read.
In March, Chinese import of Iranian crude and condensate jumped
20%MoM to 800,000 barrels a day, and are on track to extend gains in coming
months, Emma Li, an analyst with data intelligence firm Vortexa told Bloomberg.
While Iranian oil has long been sanctioned by the US,
refiners in China have proved to be a consistent outlet.
Most Iranian oil used to go to state-owned refineries but the
private refiners in Shandong especially are now running the show, said Homayoun
Falakshahi, senior crude oil analyst at Kpler.
Earlier this year, Iranian President Ebrahim Raisi said that
the oil and gas sector experienced a growth of 9% in the Iranian calendar year
1401.
Oil Minister Javad Oji has also said recently that a new
record high will be reached in the country’s oil export in the current Iranian
calendar year.
Despite the negative impacts of the US sanctions, Iran has
been ramping up its oil production and exports over the past few months.
In his remarks in November 2022, President Raisi highlighted
the failure of the enemy’s policy of maximum pressure, saying the country’s oil
export has reached the pre-sanction levels.
Back in January, the EIA in a report put Iran’s average oil
production in 2022 at 2.54 million bpd, 140,000 bpd more than a year ago.
Iran's oil production in 2021 was about 2.4 million bpd.