Argentina Oil Surges as Asian Refiners Ditch Middle East

Asian refiners have been forced to look elsewhere for crude oil due to supply disruptions caused by the Iran war.

Countries like China, Japan, and South Korea have traditionally relied on Middle Eastern suppliers, but now they're turning to Argentina as an alternative source.

Argentina's Medanito crude is being produced in the Vaca Muerta shale basin, which has seen rising oil and gas production in recent years.

The oil travels from South America into the Pacific without passing through any chokepoints or canals, making it a more attractive option for Asian refiners.

Medanito crude is being sold at a discount of $1-$2 per barrel compared to US West Texas Intermediate (WTI) grade.