China’s crude oil imports surged to 12.14 million barrels per day in June, marking a 7.4% year-on-year increase, driven by a sharp rise in deliveries from Saudi Arabia and Iran, Reuters reported on Monday. The spike reflects both restocking after refinery maintenance and opportunistic buying by independent refiners amid steep discounts on sanctioned barrels.
According to China’s General Administration of Customs, cited by Reuters, total imports reached 49.89 million tonnes in June, the highest monthly volume since March. Analysts at Oilchem and Kpler cited refinery restarts and attractive Persian Gulf pricing as key drivers, particularly for China’s “teapot” refineries in Shandong, according to Reuters.
Saudi crude shipments to China rose by 845,000 barrels per day to 1.78 million bpd. Iranian imports also climbed, with traders estimating a 445,000 bpd increase, despite ongoing U.S. sanctions. Many of these flows were channeled through independent refiners taking advantage of discounts of $2 to $3.50 per barrel below Brent.
The renewed Iranian flows come as the Trump administration considers adjustments to existing sanctions enforcement, a development closely tracked by global crude markets. Analysts warn that any official easing, either via waivers or de facto tolerance, could further widen the gap between sanctioned and mainstream barrels, reshaping Asia’s sourcing landscape.
For global markets, China’s behavior is pivotal. Increased Gulf intake by the world’s largest importer could tighten Atlantic Basin availability and constrain shipments to Europe heading into Q4. Spot market volatility is expected to rise if Chinese storage approaches capacity or if buying slows abruptly later in the year.
While Saudi Arabia benefits from consistent contract volumes, Iran’s return highlights the limits of enforcement and the shifting structure of global oil flows. With Chinese refiners moving aggressively to lock in summer barrels, attention now turns to Beijing’s July tender activity and how Washington will respond to a deepening sanctions workaround.
By Charles Kennedy for Oilprice.com
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