Kpler says:
- The jump in Iran’s oil exports in Q1 was the fastest among all producers in the Middle East, while the volume of exports is estimated to be the highest since former U.S. President Trump withdrew from the so-called Iranian nuclear deal in 2018
The world’s top crude oil importer China, for its part, has not rushed to buy cheap Russian oil.
Iran sells its crude oil almost exclusively to China and has never stopped those sales since former President Trump re-imposed the sanctions against Tehran in 2018.
Kpler analyst told the Journal:
- China is also emboldened to import more Iranian crude, not expecting to be hit by secondary sanctions by the U.S. for dealing with Iran because Washington has its plate full with Russia
The agency reported in early April:
- The Iranian Ministry of Petroleum would never disclose the methods and destinations of its oil exports
China hasn’t yet shown too much appetite for Russian crude because of several factors, according to energy consultancy Wood Mackenzie.
These include expensive freight for Russian cargoes due to the sanctions, challenges with payments and tanker insurance, the fact that a Urals voyage takes double the time compared to Middle Eastern grades going to China, and Chinese refiners’ long-term contracts with oil exporters from the Middle East.
Author: Tsvetana Paraskova