MojNews-According to latest data, China's import of Iranian oil has increased substantially. 

China’s imports of Iranian oil have reached a record of 1.75m barrels per day (bpd) in August, oiprice.com reported, citing data from Kpler.

As reported, the current figure has surpassed the previous peak of 1.66m bpd set in October 2023 and is almost 50 percent higher compared with 1.24m bpd last month.

Shipments into Rizhao and Dalian are significantly higher month on month, said Muyu Xu, an analyst with Kpler

“Chinese teapots see refining margins slightly improving, they now have stronger motivation to ramp up production and therefore need more feedstock,” she said.

Flows into Lanqiao/Rizhao and Dalian almost doubled compared to the previous month to 342k bpd and 132k bpd, respectively.

Oil from Iran has become the cheapest option for Chinese buyers, even more than Russia and more independent refiners are seeking barrels from the OPEC producer to boost their margins, said traders who participate in the market. Iranian Light was last offered at a discount of $6.0 a barrel to ICE Brent, they added, compared with a discount of less than a dollar for comparable crude from Russia.

Importers registered in China’s Shandong province were the biggest buyers of Iranian crude - masking as Malaysian - accounting for over 70 percent of the volume, according to customs data. Overall, eight Chinese regions including Liaoning and Henan took oil from the Southeast Asian nation, the most since October 2023.

Earlier this month, Reuters reported that Iran has also been expanding its oil destination markets as the country is pushing to send more oil to the global markets in an attempt to neutralize Western sanctions.

Iran has sent shipments of crude oil to new destinations such as Bangladesh and Oman, according to shipping sources and data cited by Reuters.

Oil sales are Iran's major revenue source and the country has been looking for ways to sidestep U.S. sanctions on its crude exports that former president Donald Trump re-imposed in 2018 over Tehran's nuclear program.

Iran, which is exempt from output quotas set by the Organization of the Petroleum Exporting Countries (OPEC), is striving to maximize production and exports.

Former Oil Minister Javad Oji said in July that Iran was selling crude oil to 17 countries, including those in Europe, according to Mehr News Agency.

In one new trade, the Golden Eagle tanker sailed near the port of Chittagong in Bangladesh earlier this year after receiving oil from another vessel that loaded it from Iran’s Kharg Island according to available evidence based on shipping data, Claire Jungman, from U.S. advocacy group United Against Nuclear Iran, told Reuters.

The Golden Eagle offloaded parts of the cargo to smaller tankers in ship-to-ship transfer operations around Chittagong in April, said Jungman, whose organization tracks Iran-related tanker traffic via satellite data.

The shipment to Bangladesh was separately confirmed by another oil export tracking source.

An official with state-owned Bangladesh Petroleum Corporation, which operates the country's main refinery, said it did not buy the cargo and it was difficult to establish who was the buyer.

The Golden Eagle's Liberia-based owner and manager listed in shipping databases could not be reached for comment.