To correct a typographical error in the fourth paragraph

From Si Liu

Singapore, June 4 (Reuters) - Iranian oil prices fell and were offered at a discount for the first time since April, and Russian crude premiums declined as traders cut prices to attract Chinese buyers amid slowing demand, trade sources said.

The decline in Iranian and Russian crude oil prices in the world's largest importing market is expected to negatively impact oil revenues in both Russia and Iran. The US blockade of Iranian ports has also led to a sharp drop in its exports.

Three traders said that shipments of Iranian light crude were being offered at a discount of between 50 cents and $1 a barrel compared to the Brent contract on the Intercontinental Exchange for delivery to Shandong province in eastern China this month, down from premiums of between $1 and $2 in the past two months.

Shandong province has small, independent refineries that are the main consumers of sanctioned oil.

Two of the sources said that prices for Russian ESPO crude, another type sought after by independent refineries, also fell to a premium of between three and four dollars a barrel compared to the Brent contract on the Intercontinental Exchange for delivery in June, after reaching between four and five dollars last month.

“Buyers are not increasing purchases even when supply is tight because prices are still too high for small, independent refineries that are incurring heavy losses,” said Xu Moyu, a senior crude oil analyst at Kpler.

He added, "Small, independent oil refineries are also reducing operating rates, and therefore demand is decreasing."

Some independent refineries cut operating rates in May after losses increased due to higher oil costs and weak fuel demand.

Iranian exports

Kpler data showed that China's imports of Iranian crude oil in May fell to 1.10 million barrels per day, the lowest level since January 2025, while imports of Russian crude oil reached 1.04 million barrels per day, the lowest level since August.

The decline in Iranian oil prices comes despite the collapse of the Islamic Republic's exports and the decline in overseas stockpiles.

Kpler data shows that Iran's crude oil exports in May fell to a six-year low of 260,000 barrels per day, less than a fifth of the 2025 average of 1.67 million barrels per day.

Data from OilX showed that Iran's crude oil exports reached 118,300 barrels per day in May, compared to a 2025 average of 1.88 million barrels per day.

Shaw of Kpler said that Iranian oil in the waters outside the blockaded area has fallen to about 79 million barrels from about 130 million barrels in mid-April when the U.S. embargo began.