Reuters: Iran Delivers Its Oil to China Cheaper Than Russia

Reuters: Iran delivers its oil to China cheaper than Russia does

Reuters reports that large state-owned and private refineries in China have increased their purchase of Russian oil, while small independent refineries in the country have turned to buying cheap oil from Iran and Venezuela.

According to a report published by the American news agency on Friday, April 21, the Islamic Republic has set a discount of eleven dollars for the delivery of Iranian oil in July, which is even greater than Russia’s discount for its Urals oil.

The report cites oil industry and trade sources stating that major state-owned refineries PetroChina and Sinopec in China, which had stopped buying oil from Russia after Western sanctions, resumed their purchase of Russian oil in February this year.

Additionally, two large private refineries, Hengli Petrochemical and Shenghong in the eastern Jiangsu region, have been importing Russian oil with higher discounts since last month.

Chinese customs data shows that the country purchased 2.26 million barrels of oil per day from Russia last month, which is considered a historic record.