Iran International:

Iran’s crude oil shipments to China fell sharply in May as tighter US sanctions and seasonal refinery maintenance weighed on flows, Bloomberg reported on Wednesday, citing preliminary ship-tracking data and market analysts.

According to data from Vortexa Ltd., Iran exported just over 1.1 million barrels per day (bpd) of crude and condensate to China last month, marking a drop of roughly 20% compared to the same period a year earlier.

The figures, based on shipping movements, remain subject to revision due to a growing number of tankers switching off their tracking systems in an effort to avoid detection.

“The tightening US sanctions are straining the supply chain and raising concerns about the reliability of shipments,” said Emma Li, senior market analyst at Vortexa. “At the same time, refinery demand in China has weakened, largely due to delayed seasonal maintenance, which now appears likely to extend through July.”

Independent Chinese refiners, known as teapots, are Iran’s primary customers, drawn by steep discounts on sanctioned barrels. But the facilities—mostly concentrated in Shandong province—are currently operating near record-low rates, Li noted. Many refiners had already stockpiled Iranian oil earlier this year, reducing the need for additional purchases in May.

Lower prices of competing crude from Russia, including Sokol and Novy Port grades, have also edged out Iranian supplies in the Chinese spot market.

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