Chinese Private Refiners Buy Saudi, Emirati and Iraqi Crude Cargoes

Chinese private refiners purchased three cargoes of Middle Eastern crude on the spot market this week, Bloomberg reported today. , acquired a cargo of Saudi crude for delivery this month. Shengdong Petrochemical Group Co. bought an Emirati Upper Zakum cargo, and a third unnamed refiner purchased Iraqi Basrah crude scheduled for next month.

The purchases occurred while oil prices declined after reports that tanker traffic through the Strait of Hormuz is recovering and Gulf producers are increasing output.

Earlier this year, both state-owned and private Chinese refiners reduced overseas purchases as benchmark prices approached $100 per barrel. They drew down inventories and lowered processing rates, with teapot refiners cutting runs to the lowest levels in years. The recent spot-market transactions mark a reversal from that pattern.