Iranian oil is the cheapest option for Chinese buyers

According to the exclusive report of Energy Press, data from Kepler Institute shows that China’s oil import from Iran will reach a record of 1.75 million barrels per day this month.
That will exceed the previous peak of 1.66 million bpd in October 2023 and is up nearly 50 percent from 1.24 million bpd last month, according to Kepler data covering January 2013. is
Muyo Khoo, an analyst at the Kepler Institute, said shipments to Rizhao and Dalian are significantly higher than other destinations.
“The big Chinese refiners are slightly improving refining margins, they now have a stronger incentive to increase production and therefore need more raw materials,” he said.
Beijing’s growing desire for Iranian oil
In recent days, Bloomberg reported that according to official Chinese customs data, the country imported an unprecedented amount of oil from Malaysia last month, which, according to this publication, could indicate China’s renewed desire to buy cheaper oil from Iran.
According to Bloomberg, according to government data published in recent weeks, the world’s largest oil importer imported 6.21 million tons of crude oil from Malaysia last month. which is equivalent to 1.47 million barrels per day, or almost three times the daily production of this country during 2023.
The seas near Malaysia have long been a hub for the transfer of crude oil and petroleum products from one tanker to another, sometimes to mask the country of origin, including Iran. According to government data, China has not officially bought a barrel from Iran since June 2022.
According to Bloomberg, Iranian oil is the cheapest option for Chinese buyers, and strong refiners are looking for those OPEC member oil products that can help them increase their profit margins. Meanwhile, according to this report, Iran’s light oil was recently sold at a discount of 6 dollars per barrel, while this discount for the same Russian oil was less than 1 dollar.