This month, 1,000 people chose to support the Kyiv Independent. Can we count on you, too?
Become a member
Skip to content
Edit post

Chinese oil refinery buys West African crude instead of Russian, Iranian, Bloomberg reports

by Kateryna Hodunova November 14, 2024 7:57 PM 2 min read
Illustrative purposes: A view from Russian oil company Tatneft in Tatarstan, Russia, on June 4, 2023. (Alexander Manzyuk/Anadolu Agency via Getty Images)
This audio is created with AI assistance

Private Chinese oil refinery Landbridge Petrochemical Co. has made a rare purchase of a shipment of West African oil instead of typical import from sanctioned Iran and Russia, Bloomberg reported on Nov. 14.

The Russian fossil fuel industry is a primary economic driver of Moscow's full-scale war against Ukraine. Ukraine has made a concerted effort to target Russian oil production with long-range drone strikes.

Landbridge Petrochemical Co. purchased the oil at a time when the global oil market is preparing for possible revisions to the U.S. sanctions on Iranian oil in the wake of Donald Trump's election to office.

Global banks suggest that the approach to sanctions could be stricter, Bloomberg reported.

The refinery's move reportedly sparked interest among traders, as small independent refineries in China typically import crude oil from sanctioned Iran and Russia.

Landbridge Petrochemical Co., which recently resumed operations after a long shutdown, bought 2 million barrels, including the Mostarda variety, for delivery in January, Bloomberg reported, citing traders.

Refineries like Landbridge Petrochemical Co., the so-called teapots, have mostly bought Russian ESPO and Iranian crude because they are generally cheaper and have shorter delivery routes. Yet, conditions are changing, making other flows more attractive, according to traders.

Apart from that, the limited supply of spot Iranian oil — given fears of a possible Israeli strike on Tehran's energy infrastructure — is prompting market players to look for oil sources in other countries.

Light Iranian crude was offered to Chinese refiners at a $2 per barrel discount to ICE Brent, down from $3.50 a month ago, traders said.

Oil from eastern Russia from the ESPO pipeline for January loading was offered at a premium of up to $1.80 per barrel, up 50 cents from a month ago.

Russia’s wartime economy delivers growth, but will the bubble burst?
A draft budget submitted to the Russian parliament last month has outlined the Kremlin’s plans to keep spending high in its wartime economy, with ambitions to maintain the steady levels of growth the country has seen since its full-scale invasion of Ukraine in February 2022. Surging government spen…
Let’s see how far we can go?
We’ve been amazed by your support. We’ve reached our initial goal of finding 1,000 new paying members. We still have till the end of our birthday campaign — with more support, we can do even more good journalism. Over 13,000 people are standing behind us. Can we count on you, too?
Show us support this birthday month
Become a member
visa masterCard americanExpress

News Feed

1:50 PM  (Updated: )

Reuters reports Assad may have died in plane crash, later removes report.

Reuters on Dec. 8 reported, citing its Syrian sources that "there was a very high probability that Syrian President Bashar al-Assad may have been killed in a plane crash" as he was fleeing Damascus following its capture by rebels. Reuters later deleted the information from its reporting.
11:50 PM

US announces $988 million military aid package for Ukraine.

The latest aid package will be pulled through the remaining $2 billion in funding from the Ukraine Security Assistance Initiative (USAI) — a Pentagon-led program for supplying arms to Ukraine through contracts with U.S. defense companies.
MORE NEWS

Editors' Picks

Enter your email to subscribe
Please, enter correct email address
Subscribe
* indicates required
* indicates required
Subscribe
* indicates required
* indicates required
Subscribe
* indicates required
Subscribe
* indicates required
Subscribe
* indicates required

Subscribe

* indicates required
Subscribe
* indicates required
Subscribe
* indicates required
Explaining Ukraine with Kate Tsurkan
* indicates required
Successfuly subscribed
Thank you for signing up for this newsletter. We’ve sent you a confirmation email.