The Chinese plant’s decision came as a surprise to traders, as small companies usually buy Iranian or Russian products.
A private refinery from China has bought a cargo of West African oil amid expectations of action by the Trump administration on sanctions against Iranian oil. Such an operation has piqued the interest of traders as small independent Chinese refiners often prefer to import sensitive grades of oil from Iran and the Russian Federation, Bloomberg reports.
Landbridge Petrochemical Co. bought of two million barrels, including Mostarda, for delivery in January 2025, traders said.
Similar refineries in China mainly buy Russian and Iranian oil because those shipments are cheaper and have shorter delivery routes.
The purchase comes as the global oil market prepares to see what changes the incoming Trump administration will make in implementing US sanctions on Iranian oil. Banks suggest the approach could be tougher.
Iran’s light crude is being supplied to Chinese refiners at a discount of $2 a barrel to ICE Brent, down from $3.50 last month, traders said.
Oil from Russia, loaded in January, was offered at a premium of up to $1.80 a barrel, up 50 cents from last month.
As we have written, global oil prices are falling at the start of the new work week to worsen demand prospects.
Source: korrespondent
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