While the global oil market is preparing for the Trump administration's actions regarding sanctions against Iranian oil, a private refinery from China has purchased a shipment of West African crude. The reported transaction has aroused the interest of traders, as small independent refiners from China often prefer to import sensitive oil grades from Iran and Russia.
Writes UNN with reference to Bloomberg.
Landbridge Petrochemical Co. has purchased 2 million barrels, including Mostarda, for delivery in January 2025, according to the trader.
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Similar refineries in China, known as “teapots,” used to mostly buy Russian and Iranian oil, as these cargoes tend to be cheaper and have shorter delivery routes. But conditions are changing, making other flows more attractive.
This purchase comes at a time when the global oil market is preparing to see what changes the next Trump administration will make to the implementation of US sanctions against Iranian oil.
Banks suggest that the approach may be more stringent. According to traders, the limited supply of spot Iranian oil - given fears of a possible Israeli strike on Tehran's energy infrastructure - is prompting the “dummies” to look for other sources of oil in other countries.
According to traders, light Iranian crude was offered to Chinese refiners at a discount of $2 per barrel compared to ICE Brent, down from $3.50 a month ago.
Oil from eastern Russia for January loading was offered at a premium of up to $1.80 per barrel, up 50 cents from a month ago.
So far, the Chinese company has not responded to journalists' questions.
Oil falls on the back of data from the US, but the market is watching the Middle East23.10.24, 15:32