China bought less oil from Iran in July

China’s imports of Iranian oil fell by about a third in July, partly due to weak demand from private refiners after a surge in shipments in June, Energy Press reported, citing Bloomberg. Volumes fell to about 1.2 million barrels per day, down nearly 30 percent from June and slightly below a year ago. Data from Vertexa, another data provider, showed a similar decline for the month.
China’s Iranian oil imports fall
Weak demand from private refiners (known as teapots) helped to reduce overall imports.
China is usually the largest importer of Iranian crude under U.S. sanctions, although government figures often show little or no flow. Private refiners, known as teapots, are usually the largest buyers. Import volumes from Tehran fluctuate and are a measure of overall demand. Official import figures are due on Thursday.

“Demand from teapots is not very strong and their appetite for storage has waned after higher imports in June,” said Moyu Zhou, senior crude oil analyst at Kepler. “In addition, some of them are facing crude oil import quota restrictions,” he added, referring to permits that regulate import volumes.