China’s oil imports from Iraq drop to 60,000 barrels per day

Baghdad (IraqiNews.com) – Recent figures revealed that China’s purchases of Iraqi oil fell significantly in May, amid global energy market turbulence caused by tensions in the Middle East and the closure of the Strait of Hormuz.

According to a Reuters study released on Monday, China’s imports of Iraqi oil plummeted to 60,000 barrels per day in May, down from 790,000 barrels per day in February, indicating a sharp drop in Iraqi crude supplies to the world’s largest oil importer.

The figures also demonstrated that China’s total seaborne crude oil imports decreased to 6.36 million barrels per day in May, the lowest level in nearly a decade, from 8.10 million barrels per day in April.

The study attributed the drop to increased global oil prices as a result of intensifying Middle Eastern tensions, as well as supply interruptions caused by missing cargoes from certain key producers, notably Iraq and Kuwait.

When prices climbed, Chinese refineries lowered their purchases. Additionally, logistical restrictions and the shutdown of important shipping channels further hampered supply, pushing Beijing to reorganize its energy sources and reduce imports from several oil-producing countries.

According to the study, China may increase its imports again, reduce refinery operations, or use its strategic reserves to compensate for the supply shortage in the next period of time.

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المصدر: Iraqi News