China’s Refiners Turn to Africa and Brazil Crude as Freight Rates Ease

China’s refiners are buying crude oil from West Africa and Brazil after freight rates eased in the past two weeks, while competition for Russian supply is stronger and Iranian barrels have disappeared. Following a decline in shipping rates from all-time highs, some Chinese refiners have bought West African and Brazilian crude grades at premiums of up to $20 per barrel above ICE Brent for delivery in December, trading sources told Bloomberg on Wednesday.

In early October, the freight rates of crude cargoes from the Atlantic Basin to Asia soared to record highs. S. Gulf Coast to China soared to as high as $80 million earlier this month. That’s ten times the average tanker rates that had held for years before the Iran war. S. to Asia last week.