Business Maverick: Iran slashes the cost of its oil to compete with Russia in China

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Iran is being forced to discount its already cheap crude even more as a top ally gains a bigger foothold in the key Chinese market.

as Moscow seeks to maintain flows following the fallout from its invasion of Ukraine. That’s led to increased competition with Iran in one of the few remaining markets for its crude shipments, which have been significantly curtailed by US sanctions.

China’s official data only lists three months of imports from Iran since the end of 2020, including in January and May this year, but third-party figures indicate a steady flow of crude. After a slight decline in April, imports have been over 700,000 barrels a day in May and June, according to Kpler. Industry consultant FGE says Russian Urals have displaced some Iranian barrels, however.cargoes that are scheduled to arrive in China during August, according to traders.

 

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There’s still the rest of the world. A little healthy competition is good for us

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