China's appetite for Iranian oil reaches unprecedented levels

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China's appetite for Iranian oil has reached unprecedented levels, with imports set to hit a record 1.75 million barrels per day this month – defying international sanctions. This surpasses the previous peak of 1.66 million barrels per day set in October 2023 and represents a stunning 50 percent increase from last month.

The surge is particularly evident in China's ports of Rizhao and Dalian, where shipments have nearly doubled. Chinese independent refiners, facing improved profit margins, are ramping up production and demanding more raw materials.

But here's where it gets interesting – officially, China hasn't purchased Iranian oil since June 2022. Instead, we're seeing record imports from Malaysia, with 6.21 million tonnes arriving in July alone – nearly triple Malaysia's average daily production for 2023.