Chinese independent refiners have turned to Angola and the Republic of Congo for crude oil as the war involving Iran disrupts supplies from the Middle East and intensifies competition for alternatives.
The refiners have purchased at least two cargoes of Congo’s Djeno crude and one cargo of Angola’s Plutonio crude, according to a Reuters report citing traders and industry analysts.
The African purchases form part of a much larger buying campaign involving more than 20 million barrels of crude from West Africa, Canada and Colombia over recent weeks.
The 20-million-barrel figure covers all those regions and should not be described as the volume purchased from Angola and Congo alone.
Chinese independent refiners, commonly called “teapots”, are seeking replacement supplies as attacks involving the United States and Iran restrict exports through the Strait of Hormuz. Availability of Russia’s ESPO crude has also tightened as larger Chinese refiners absorb more of the supply.
