Iranian Oil Exports Plunge 51% Amid China Cargo Halt

Iran's oil exports to China have plummeted in recent months, with September's shipments reaching just 475,000 barrels per day, down from 980,000 in August.

This decline is attributed to a halt in cargo arrivals at China since September 26 and the absence of any loadings at Kharg Island, Iran's main export terminal, throughout September.

Although Iranian oil continued flowing into China thanks to stocks held on tankers in Asian waters, these volumes are dwindling rapidly. In mid-April, around 160 million barrels were afloat; by the end of September, this number had dropped to approximately 86 million barrels, including 23 million within the Persian Gulf.

Iran's onshore storage tanks were about 60% full and contained around 70 million barrels, according to Kpler estimates. If export restrictions persist, Tehran may struggle to meet domestic refinery demand of 2.2 million barrels per day, which could force it to reduce production even further.