Private Chinese refiners secure Saudi, Emirati, and Iraqi crude cargoes as spot prices decline, traders say.
Chinese independent refiners, known as teapots, are increasing spot purchases of Middle Eastern crude as prices fall. Rongsheng Petrochemical Co. bought a Saudi crude cargo for prompt delivery this month, while Shengdong Petrochemical Group Co. acquired an Emirati Upper Zakum cargo. A third refiner also secured Iraqi Basrah crude for next month, according to trading sources.
The purchases follow a recent decline in crude prices, making spot market deals more attractive. Private refiners, which account for roughly a fifth of China’s crude imports, often adjust buying strategies based on price movements. Similar buying patterns were observed during previous price dips in 2023.
No immediate market reaction was reported, though the increased demand could support regional crude benchmarks if buying activity persists.