Chinese independent refiners' Iranian crude imports fell 41% in June to a 17-month low

China's independent refineries imported a combined 3,636,000 tonnes of Iranian crude in June 2026, down 41.4 percent from May and 47.1 percent from a year earlier, the lowest level in 17 months.

According to oil market reports in July 2026, these refiners have resumed buying Middle Eastern grades such as Basrah Heavy, Al-Shaheen, Upper Zakum and Basrah Medium, because discounts on those cargoes have widened to $7 to $8 a barrel. Iranian Light, by contrast, has been offered at a discount of roughly $2 to $3 a barrel to ICE Brent on a delivered Shandong basis.

Two Chinese independent refiners each bought one very large crude carrier of Basrah Heavy and Al-Shaheen, while a third took parcels of Upper Zakum and Basrah Medium, with delivery due in July and August. Shandong's small refiners have bought between 16 million and 20.5 million barrels of non-sanctioned Middle Eastern crude in recent weeks, their largest such purchases since the conflict began. The utilisation rate at Shandong independent refineries had fallen to 50.76 percent in June.