China's State-Owned Refiners Consider Resuming Iranian Crude Imports for First Time Since 2019
Taylor Wilson
Sinopec and PetroChina are evaluating the banking, insurance, and shipping arrangements needed to resume buying Iranian crude — a first since 2019. But ample supply, weakening demand, and unclear logistics mean an actual purchase is far from certain.
Why are state refiners reconsidering Iranian oil now?
The direct trigger: Washington issued a sanctions waiver this Monday, allowing global buyers to settle Iranian crude and petrochemical purchases in U.S. dollars.
That waiver stems from last week's memorandum of understanding between the U.S., Israel, and Iran, which ended their state of hostilities.
This means → state refiners stayed away from Iranian oil not for lack of interest, but because the dollar-clearing channel was blocked. The waiver reopens that channel — and with it, the conversation.
If the door is open, why not buy immediately?
The market is not short of oil: Saudi, Kuwaiti, and Iraqi exports are all rising; Asian refiners have already stocked up via West African, Brazilian, and Russian cargoes.
Key logistics remain unclear: which banks can provide financing and clearing, and whether Iran has sufficient shipping capacity — neither question has an answer yet.
Demand is working against them too: Chinese fuel and petrochemical consumption is falling faster than recent cuts to crude imports and refinery throughput.
In plain terms = oil is plentiful, the payment route is uncertain, and refiners are still digesting inventory — three obstacles at once.
Why is Sinopec seen as the likeliest first mover?
Sinopec was once Iran's single largest customer and knows Iranian grades and operational workflows best.
More critically, Sinopec faces deep supply cuts and has been drawing down commercial inventories since May — its restocking need is real.
During the previous 30-day waiver window in March, Sinopec approached Iran's national oil company (NIOC) for pricing but could not close a deal before the window shut.
This means → willingness was never the issue — time was. If this window lasts longer and the banking channel opens, Sinopec is the most likely to move first.
Is Iran ready on its end?
NIOC maintains marketing teams in Beijing and Shanghai and expects a fresh round of inquiries from state refiners in the coming days.
NIOC will be the sole counterparty for oil and gas deals under the waiver framework; Russia's main export grade, ESPO crude, will serve as the pricing benchmark.
Tanker-tracking firm Vortexa shows Iranian crude loadings surged to roughly 1.6 million barrels per day between June 19 and 24 — up from just 340,000 b/d in the first 18 days of June and 370,000 b/d in May.
This reflects an Iranian supply side already ramping up — but the buyers so far remain China's independent "teapot" refiners, trading through middlemen and settling in renminbi. State refiners have not yet entered.
What determines whether a deal actually happens?
Two variables matter: how fast the financing channel opens and Iran's actual loading capacity during the waiver window.
In plain terms = the waiver opened the door, but the path behind it — bank clearing, insurance underwriting, shipping arrangements — must be built step by step. Any bottleneck blocks the whole route.
If state refiners still cannot complete a transaction within this window, the buyer landscape for Iranian crude stays unchanged: teapot refiners dominate, renminbi settlement dominates.
Content is for reference only, not financial advice.