Chinese independent oil refiners are increasingly buying crude oil from West Africa, Canada and South America as supplies from Iran and Russia become harder to obtain.
According to Reuters, the Chinese refiners, commonly known as “teapots,” have purchased more than 20 million barrels of crude oil in recent weeks. The buying spree has pushed prices for some crude grades to multi-month highs.
The increased demand is linked to disruptions in Middle Eastern oil supplies caused by the ongoing conflict involving Iran. Reduced shipments through the Strait of Hormuz have forced Chinese refiners to look for alternative sources.
Among the crude grades purchased are Djeno from Congo and Plutonio from Angola. Djeno has reportedly been sold at premiums of about $22 per barrel above Brent crude, partly because of high freight costs. Chinese refiners have also bought Canadian crude shipped through the Trans Mountain pipeline.
Chinese independent refiners account for about one-fifth of China’s crude oil imports. They have traditionally relied heavily on cheaper supplies from sanctioned producers, particularly Iran and Russia. However, tighter availability has pushed them into the international spot market.
Reuters reports that Chinese seaborne crude imports could rise to between 8.5 million and 9 million barrels per day, up from about 7 million barrels per day in July, although this remains below pre-war levels of around 10 million barrels per day.
The development could benefit African oil producers, particularly countries such as Nigeria, Angola and Congo, because stronger Chinese demand may support prices for their crude grades. However, higher shipping and insurance costs remain a challenge for buyers. The situation also shows how geopolitical tensions are reshaping global oil trade, with major importers increasingly searching for supplies outside traditional markets.
