Traders told Reuters buyers acquired at least 12 million barrels as Iranian flows fell. Two Chinese companies also bought Qatari crude.
Independent Chinese refiners have increased purchases of Iraqi and Qatari crude for October and November delivery as they seek to replace reduced Iranian supplies. Three traders told Reuters that the refiners bought at least 12 million barrels from Mercuria, Totsa and Trafigura. One trader estimated the total at 15 million to 20 million barrels. The cargoes were sold at premiums of $12–$20 a barrel over Brent, mostly in Iraq’s Basra Medium and Basra Heavy grades.
Hongrun and Xinhai Petrochemical separately bought 3 million barrels of Qatar’s Al-Shaheen crude for early November delivery. Chinese buyers had earlier purchased more than 20 million barrels from West Africa, Canada and Colombia in late August and early September.
The shift comes as Iranian exports have declined following a US naval blockade and other Gulf supplies through the Strait of Hormuz have recovered. Kpler estimated China’s Iranian crude imports in September at 590,000 barrels per day, nearly half the year-earlier level and the lowest since January 2023. A trader told Reuters sellers had lowered premiums as exports recovered, while Chinese refiners were unwilling to pay more than $20 a barrel above the immediate benchmark.