Independent Chinese refineries are stepping up purchases of Iraqi crude as they look for alternative supplies amid a decline in Iranian oil flows.
Oil industry traders said Chinese refiners had secured at least 12 million barrels of Iraqi and Qatari crude for October and November deliveries, while other estimates suggest total purchases could reach between 15 million and 20 million barrels.
A substantial share of the deals involves Basra Medium and Basra Heavy crude, which are becoming increasingly attractive to Chinese buyers due to the availability of supplies and relatively quick delivery schedules.
The surge in demand for Iraqi crude comes as China’s imports of Iranian oil decline, encouraging independent refiners to diversify their sources and rely more heavily on supplies from Gulf producers.
