Chinese companies import 20 million barrels from the Middle East

Arabic - Concerns about crude oil supplies in markets are resurfacing as buyers, particularly in Asia, shy away from Iranian oil, following the United States’ revocation of the general license that had permitted the sale of Iranian crude after attacks on oil tankers in the Strait of Hormuz.

Over the past few weeks, independent refineries in China have shifted to importing around 20 million barrels of oil from Iraq, the United Arab Emirates, Qatar, and Saudi Arabia, which are offering discounts ranging from $5 to $8 per barrel. Meanwhile, discounts on light Iranian crude have remained at $3 per barrel, making it more expensive than other crude grades.

According to Kpler data, China’s imports of Iranian crude have averaged 556,000 barrels per day since the beginning of July, marking the lowest level since January 2023.