TEHRAN- China's oil imports from Iran have hit record highs as Iran ramps up output despite the threat of further U.S. sanctions, Reuters reported.

China, the world's largest crude importer and Iran's top customer, bought an average 1.05 million barrels per day (bpd) of Iranian oil in the first 10 months of 2023, according to shiptracking data from Vortexa. This is 60 percent above pre-sanction peaks recorded by Chinese customs in 2017.

Imports jumped this year after Tehran raised output and offered steep discounts.

Tehran's October output edged up to 3.17 million bpd, a Reuters survey found, the highest since 2018, when Washington re-imposed sanctions on Iran, according to Reuters surveys and OPEC figures.

China's October imports from Iran are estimated to have reached around 1.45 million bpd, the highest monthly level ever, Vortexa data showed.

Iran’s oil shipments to China have more than tripled over the past three years despite the U.S. sanctions on the country and the increase in Russia’s shipments to the Asian country, according to the data released on July 30 by data analytics firm Kepler.

Back in April, Bloomberg reported that “Chinese private refineries are buying more Iranian oil despite the rising competition for supplies from Russia.”

“So-called teapots are prioritizing the flows, with Russian supplies getting more pricey as mainstream buyers such as state-owned Chinese refiners and Indian processors take a greater share,” the report read.

In March, China’s imports of Iranian crude and condensate jumped 20 percent month-on-month to 800,000 barrels a day, and are on track to extend gains in coming months, Emma Li, an analyst with data intelligence firm Vortexa Ltd told Bloomberg that month.

While Iranian oil has long been sanctioned by the U.S., refiners in China have proved to be a consistent outlet.

Most Iranian oil used to go to state-owned refineries but “the private refiners in Shandong especially are now running the show,” said Homayoun Falakshahi, senior crude oil analyst at Kpler.

Earlier this year, Iranian President Ebrahim Raisi said that the oil and gas sector experienced a growth of nine percent in the past Iranian calendar year 1401 (ended on March 20).

Oil Minister Javad Oji has also said recently that a new record high will be reached in the country’s oil export in the current Iranian calendar year.

Despite the negative impacts of the U.S. sanctions, Iran has been ramping up its oil production and exports over the past few months.

In his remarks in November 2022, President Raisi highlighted the failure of the enemy’s policy of maximum pressure, saying the country’s oil export has reached the pre-sanction levels.

MA