LAGOS, Nov 4 – Chinese refiners have purchased millions of barrels of crude oil from Iraq and West Africa for delivery in December, according to multiple traders familiar with the transactions, as buyers secured supplies from producers across the two regions.
The purchases included approximately 6 million to 8 million barrels of Iraqi crude, with Basrah Heavy trading at premiums of around $10 to $13 per barrel to ICE Brent on a delivered basis, the traders said.
Independent refiners in China’s eastern Shandong province also acquired between 8 million and 10 million barrels of West African crude for December arrival.
The West African purchases included Congo’s Djeno, Angola’s Dalia and Gabon’s Mandji grades. These crude varieties traded at premiums of approximately $20 per barrel or higher to ICE Brent on a delivered basis, reflecting the prices agreed for the shipments.
According to the traders, Adnoc Trading was among the sellers of Iraqi crude, while Totsa and PetroChina supplied some of the West African barrels.
The transactions were completed last week. The companies involved typically do not comment on individual commercial deals.
The purchases highlight continued demand among Chinese refiners for crude supplies from the Middle East and West Africa. For African producers, the transactions provide another indication of the role of Asian buyers in the international market for regional crude grades, particularly Angola, Congo and Gabon.
