China has increased fuel oil imports from Iran in 2013, exploiting a loophole in U.S. sanctions aimed at punishing countries that import Iranian oil.  These sanctions require reductions in crude oil, not fuel oil, which is a byproduct in the refining process.  In 2012, China imported less than $1 million worth of fuel oil from Iran, compared to $495 million in the first seven months of 2013.  Some Chinese refineries are configured to process fuel oil into more valuable fuels.