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Oil prices jump as China boosts imports and Middle East supply stays disrupted

Djeno crude from Congo is quoted at a $20 per barrel premium to ICE Brent, up from $15 two weeks ago, as Asian buyers look to South American and African grades to replace Middle East barrels.

Reported · Written up by our desk · Energy

OilPrice reports that crude prices from Canada, South America and Africa have risen in recent weeks, supported by a rebound in Chinese oil import demand after a decade low in June and by continued disruptions to Middle East supply.

According to OilPrice, Djeno crude from Congo, an OPEC grade, is being offered at a $20 per barrel premium over ICE Brent. That premium has widened from $15 per barrel two weeks ago, signaling tighter availability and stronger buying interest in alternative sources.

OilPrice adds that Asian refiners, including China, Japan and South Korea, have turned to purchases as far away as Argentina to offset Middle East supply losses. In recent weeks, refiners in Asia have bought Argentina's Medanito crude, and at least one cargo comparable to U.S. West Texas Intermediate loaded in August, according to anonymous traders cited by the outlet.

OilPrice also says China is increasing imports of African and American grades, alongside its preferred ESPO blend from Russia, as Iranian crude supply has shrunk following the re-imposed U.S. blockade on Iran's oil exports. The outlet notes China has seen crude imports rebound as Beijing eased fuel export restrictions and refiners moved to restock amid relatively solid refining margins.

Latest closeWTI crude $90.70 ▲0.5%|Brent $95.32 ▲0.7%

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