Report: More Iranian oil being shipped to China via Indonesia

The Monday report by Reuters said Chinese buyers of Iranian crude have shifted to oil trans-shipped in waters off Indonesia rather than Malaysia, which was once the main hub for rebranding Iranian oil destined for China.

The report cited Chinese customs data showing that China’s crude imports from Indonesia surged from less than 100,000 metric tons (mt) in 2024 to 9.81 million mt, equivalent to 235,570 barrels per day (bpd), in the year to October.

By contrast, China’s oil imports from Malaysia have almost halved since July, dropping sharply from this year’s peak of 8.5 million mt recorded in March.

Reuters reiterated claims from its earlier reporting that much of the crude China imports from certain South Asian countries is actually of Iranian origin. It said shipments are being rerouted through Indonesia due to increased scrutiny from banks over cargoes labeled as Malaysian.

Iranian authorities have never confirmed such claims or other reports alleging that the country uses tactics such as ship-to-ship transfers in South Asian waters to deliver oil to Chinese clients.

However, Iranian oil exports have consistently increased in recent years, and experts believe much of the crude ends up at private refineries in China, a country that has officially reported no Iranian crude imports since 2022.

Recent data from Kpler, an energy analytics firm, indicates that China imported an average of 1.37 million bpd of Iranian crude during the first ten months of this year./isna