China’s private refiners snap up Middle East oil as prices slide
Asian refiners are inundated with offers as shipments through Hormuz rise after an interim peace deal between US and Iran
Published Thu, Jul 2, 2026 · 02:47 PM
CHINA’S independent refiners are taking advantage of cheaper Middle Eastern oil after flows accelerated through the Strait of Hormuz, snapping up barrels from producers including Saudi Arabia and Iraq.
Rongsheng Petrochemical has bought Saudi crude on a spot basis for arrival in July, while Shandong Chambroad Petrochemicals purchased Iraq’s Basrah grade for August, according to traders with knowledge of the matter.
Another processor, Shenghong Petrochemical Group, acquired Upper Zakum from the United Arab Emirates, they said.
Refiners in Asia have been inundated with offers as shipments through Hormuz picked up following an interim peace deal between Washington and Teheran, and after the US issued a temporary waiver allowing the purchase of Iranian crude.
State producers Saudi Aramco and Abu Dhabi National Oil have been offering their oil on more flexible terms in an effort to encourage higher sales.
Representatives from Rongsheng, Chambroad and Shenghong did not immediately respond to emails seeking comment.
Many of the cargoes sold by Aramco and Iraq were priced at discounts of as much as US$5 a barrel to Brent futures on a delivered basis to China, said the traders, asking to not be identified discussing private information.
Those levels are much cheaper than grades from West Africa and Brazil, which are the typical sources for their spot crude requirements, due to costly long-haul freight, traders said.
It is also comparable to, or possibly cheaper than, recent offers for Iranian crude, they added. BLOOMBERG
