Iraq strengthens its presence in the Chinese market as Iranian oil supplies decline.
Iraq strengthens its presence in the Chinese market as Iranian oil supplies decline.
2026-10-07
Shafaq News – Follow-up
Independent Chinese refineries have stepped up their purchases of Iraqi oil, particularly Basra medium and heavy crude, to offset declining Iranian supplies, at a time when oil exports from Gulf producers via the Strait of Hormuz are recovering.
Traders told Bloomberg that Chinese refineries bought at least 12 million barrels of Iraqi and Qatari crude oil for delivery during October/November, while one trader estimated total purchases at between 15 and 20 million barrels.
Most of the purchases were of Basra Medium and Heavy crude, which sources described as among the cheapest types of oil available in the Middle East. The list of buyers included a number of independent Chinese refineries, including Hongrun Petrochemical, Zhicheng Petrochemical, Kirun Petrochemical, Hualong and Chambrod Petrochemical.
Traders said Iraqi oil has become a new benchmark for independent refineries in China, thanks to its abundant and fast supply, at a time when those refineries are looking for alternatives to Iranian crude.
According to data from Kpler, China’s imports of Iranian oil fell to about 590,000 barrels per day in September, a decrease of nearly half year-on-year, and the lowest level since January 2023.
The volume of Iranian crude oil stored on tankers outside the blockade zone has also decreased to 45 million barrels, compared to about 100 million barrels in late July, while Kpler data showed that Iran did not export any crude oil during September for the first time since the company began tracking Iranian oil flows in 2013.
shafaq.com
