Appetite for Iranian crude is growing in China, the world's biggest oil importer, after the extension of supply cuts by Saudi Arabia and Russia boosted global prices, while Tehran is stepping up output and exports despite U.S. sanctions, reported the Reuters.
Although China's "teapots", or small independent refiners, are stocking up on Iran's discounted oil as they exploit robust margins to fill strong seasonal demand, big state refiners are still keeping away.
Iran's crude exports of about 1.5 million barrels per day (bpd) stand at their highest in more than four years, with more than 80% shipped to China, data from consultancies FGE and Vortexa shows.
Chinese state-owned enterprises had not resumed import and refining of Iranian oil because U.S. sanctions, and the threat of secondary sanctions, remain a deterrent.