The FINANCIAL — China's imports of Iranian crude oil recovered from February and March levels but still fell from a year earlier in April, after China International United Petroleum & Chemical Co., known as Unipec, resolved a commercial dispute with National Iranian Oil Co. in mid-February.
Unipec skipped purchases before it settled the terms of its supply agreement with NIOC, and the additional barrels likely started arriving in April around three weeks after being shipped from Kharg Island in Iran.
According to Dow Jones, the higher volumes from Iran in April may signal further increases in coming months, although it is unlikely that this year's levels will eclipse last year's. Iran will fully restore crude exports to China in the next few months, a person familiar with Iran's oil sales has said.
Chinese officials have said that Western sanctions aren't likely to impact Chinese imports from the Islamic Republic. This is in contrast to neighboring countries, including Japan and Korea, which have reduced Iranian imports as part of efforts to seek sanction waivers from the U.S. government.
China's April crude imports from Iran fell to 1.6 million metric tons, or about 390,000 barrels a day, down 23.7% from a year earlier. This was up 48.2% from March, when Iran was China's fifth-largest supplier. It was third-largest last year, when it shipped over about 557,000 barrels a day.
Crude shipments from Sudan, which was China's seventh-largest supplier last year, ground to a standstill in April after falling 59.2% and 52% in February and March, respectively. South Sudan halted the flow of crude to Sudan in January after accusing it of stealing oil. China is by far the largest buyer of crude produced in South Sudan. It imported about 260,000 barrels a day of Sudanese crude last year.
China made up for the losses by boosting imports from Saudi Arabia, Angola, Russia and the United Arab Emirates. Crude shipments from Saudi, in particular, rose to 4.38 million tons, or 1.07 million barrels a day, in April, up 14% on year.
Total crude imports in April rose 3.3% on year to 22.26 million tons, or 5.44 million barrels a day, customs data showed. However, they fell from March's 5.57 million barrels a day, likely due to refinery maintenance season, which is expected to reach its peak in May.
April's net crude imports and production outpaced refinery throughput by about 522,000 barrels a day, an indication of stockpiling.
The country's commercial crude stocks at the end of April rose 4.36% from a month earlier, the state-controlled Xinhua news agency said Monday.
China was a net exporter of diesel, gasoline and kerosene in April.
The country imported 35,239 tons of diesel and exported 78,436 tons, the customs data showed. It imported 373,027 tons of kerosene and exported 651,473 tons.
China imported negligible amounts of gasoline and exported 139,119 tons. Chinese fuel oil imports rose 4.0% in April, to 2.22 million tons.
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