China Scrambles for Oil Amid Strait of Hormuz Disruptions

Chinese independent refiners, also known as 'teapots', have been actively seeking replacement supplies for crude oil due to disruptions in Middle Eastern exports. The Strait of Hormuz, a crucial waterway for oil shipments, has seen restrictions following the Iran-US conflict.

The Chinese refiners have turned to West Africa and other regions to meet their needs. In recent weeks, they have purchased over 20 million barrels of crude from various sources, including Angola and the Republic of Congo.

Angola's Plutonio crude and Congo's Djeno crude have been among the grades in high demand by Chinese refiners. The latter has seen a significant price increase due to its scarcity. In June, Djeno crude was offered at discounts, but recent disruptions have tightened the physical oil market, leading to a $22 premium for each barrel of Djeno.

The surge in Chinese demand has also driven up prices globally, with Brent crude exceeding $100 per barrel.