Imports of Iranian crude have been flowing into the port and refining city of Dalian since late last year, tanker tracking firms and trading sources said, helping sustain the country’s purchases of the oil at near record levels.
The shift has happened as demand for Iranian crude from small buyers in the independent refining hub of Shandong province has waned in the face of deteriorating refining margins, squeezed by higher crude prices but weaker-than-expected fuel demand, traders said. They have been Iran’s main buyers in China since 2019.
Iran, including its oil, is subject to U.S. sanctions, reinstated in 2018 over concerns about its nuclear program. But China did not stop buying Iranian oil, with margin-driven independent plants filling a vacuum left by sanctions-wary state firms, Reuters has reported.
Vortexa, a consultancy that tracks tanker flows, said 23 cargoes, or a total of 45 million barrels, of Iranian oil was discharged at Dalian between October 2023 and June 2024.
