Iran Press/ Asia: The volume was the highest since October 2023, when it hit 6.22 million mt. Iranian crude accounted for about 65.7% of the total feedstock portfolio of small-sized independent refineries in Shandong province in June, compared with 54.2% in May.
June's higher imports were mainly due to feedstock requirements of the independent refineries, which have been struggling with weak refining margins for most of 2024 so far. Iranian crudes, which are much cheaper than Russian ESPO crudes, have gained more popularity among independent refineries in recent months.
"Other crudes are not [as cheap as] Iranian crudes," said a trader source. Early deals for August-arrival ESPO sold to China were heard at discounts of around 60-80 cents/b to ICE Brent, while Iranian Heavy was at a discount of around $9/b, making it more attractive under the weak margins.
In the first half of 2024, combined feedstock imports from Iran rose 22.3% on the year to 30.2 million mt from 24.7 million mt. These cargoes accounted for around 52.2% of feedstocks imported by independent refiners during the same period, growing from a low base of 35.8% in the corresponding period last year.
Iran boosted its crude oil production by more than 70% over the past three years to 3.6 million b/d, following $34 billion investment in 155 projects, Oil Minister Javad Owji said on June 24.
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