China’s Iranian oil imports ease on lure of Russian oil

A revived nuclear deal would allow Iran to boost its oil sales beyond China -- Iran's number one customer for the past two years

China's Iranian oil imports in April came off peak volumes seen in late 2021 and early 2022 as demand from independent refiners weakened after Covid-19 lockdowns pummelled fuel margins and on growing imports of lower-priced Russian oil.

The easing of Iranian oil purchases, which still make up some 7 per cent of imports by the world's largest crude importer, came as Western diplomats have largely lost hope in reviving a 2015 nuclear pact while high oil prices emboldened Iran to take its time to return to an agreement.

A revived nuclear deal would allow Iran to boost its oil sales beyond China - Iran's number one customer for the past two years - to previous clients in South Korea and Europe.

Meanwhile, Russian crude, displaced by falling demand in Europe on growing concerns about sanctions over Russia's invasion of Ukraine, is heading to China. Russia sent tens of thousands of troops into Ukraine on February 24 in what it called a special operation.

Initial assessments by Vortexa Analytics showed China imported nearly 650,000 barrels per day of Iranian crude in April, slightly less than the nearly 700,000 bpd discharged in March.

Kpler, another data analytics firm, tentatively pegged Iran's April exports at 575,000 bpd, down from an average of 840,000 bpd in the first quarter of 2022, though the agency expected to revise up April volumes in coming weeks.