Iran Economy NewsIran’s Oil Exports to China Down 60%

Iran’s Oil Exports to China Down 60%

-

Iranian oil exports to China in June were down 60% from June 2018, according to China’s customs authorities, with only a daily average of 208,205 barrels of Iranian oil coming into China.

By Pooya Stone

Iranian oil exports to China in June were down 60% from June 2018, according to China’s customs authorities, with only a daily average of 208,205 barrels of Iranian oil coming into China.

A heavy decline began in May when the US removed sanctions waivers on Iranian oil, but even then China was still importing 254 thousand barrels per day (bpd), which is 46,000 extra bpd than in June.

Prior to the US sanctions on Iranian oil, imposed in November last year, China was buying roughly 690 thousand bpd, but the average for 2019 is 437 thousand bpd.

It’s unclear whether any buyer has been arranged because state oil firms said they stopped taking Iranian oil in May, fearing US sanctions, and have started importing from Russia and Saudi Arabia instead. Despite this, the oil was offloaded at Jinzhou, Tianjin and Huizhou where Chinese oil firms operate refineries and commercial storage tanks.

It’s important to note that Iran owes money to Chinese companies Sinopec and CNPC for developing its oil fields in Khuzestan Province, so some of these oil shipments may actually be payment for the debt and would not have netted Iran any extra money.

The Chinese import-export data also show that exports to Iran have declined by 46% in the first six months of this year, compared with the same period last year, which is believed to be linked to US banking sanctions on Iran.

The sanctions are so severe that Iran, which used to export over two million bpd of oil, now exports less than 400,000 bpd, and many companies are refusing to insure or transport the oil, which means that the US is well on its way to getting Iran’s oil exports to zero.

Iran is losing roughly $25 billion a year, which is crippling its economy, so it is putting pressure on Europe and others to help them evade US sanctions, even stepping up its nuclear program and breaching the 2015 nuclear deal.

The US is monitoring Iranian oil shipments and imposed sanctions on a Chinese company last week for transporting Iranian oil, in violation of US sanctions. On July 22, US Secretary of State Mike Pompeo said that Chinese company Zhuhai Zhenrong and one of its executives knowingly violated US sanctions on the import of Iranian oil.

Companies tracking oil global oil shipping report that Iran is stockpiling oil in China, but the exact quantity is not known. However, it is possible the stockpiled oil is not being reported by Chinese customs as imports since no Chinese entity has purchased it.

Latest news

 Statistics show that New Year accidents’ deaths in Iran reached 585

Ahmad Shirani, the head of the Information and Traffic Control Center of the Iranian regime’s police, announced that the...

Land Subsidence in Critical Conditions in Isfahan

Mehdi Toghyani, a member of the Iranian regime’s Majlis (parliament), pointed to the occurrence of land subsidence in various...

Iran’s Actual Inflation Rate Higher Than Official Stats

The state-run Donya-e-eqtesad newspaper, in a report analyzing the "general sentiment" regarding inflation in 2023, has stated that households...

Iranian Workers’ Monthly $136 Wages Can’t Cover $500 Expenses

The lives of a significant portion of the Iranian population are marked by uncertainty, largely because the Iranian economy...

Iranian Nurses Earn Twice Their Wages in Ride-Hailing Services

Reza Aryanpour, a member of the regime’s Majlis (parliament) Health and Treatment Commission, highlighted the growing trend of nurses...

Iran: Unprecedented Record of 152 Million Liters of Gasoline Consumption Per Day

On March 19, Iran set a new historical record in gasoline consumption with 152 million liters consumed in one...

Must read

Sasol says may divest from Iran unit

Reuters: South African petrochemicals group Sasol said on Wednesday...

Britain’s veteran rights advocate challenges Human Rights Watch on Iran report

Iran Focus: London, May 26 – A prominent British...

You might also likeRELATED
Recommended to you