Chinese Refiners Buy Iraqi, West African Crude
Refiners secured crude cargoes for December delivery at premiums to ICE Brent, according to traders familiar with the deals.
Updated on Nov. 3, 2026 in Oil and Gas
Chinese refiners bought about 6 million to 8 million barrels of Iraqi crude and independent refiners in Shandong province bought 8 million to 10 million barrels of West African crude for December arrival. The deals were completed last week.
Why it matters
The purchases show Chinese buyers continuing to source crude from both Middle Eastern and West African suppliers at premium prices for delivery later this year. Premiums of this size indicate how sellers are pricing delivered barrels in the current market.
Basrah Heavy traded at $10 to $13 a barrel above ICE Brent on a delivered basis, while West African grades such as Djeno, Dalia and Mandji carried premiums of about $20 a barrel or higher. The companies typically do not comment on their commercial deals, so final transaction values were not disclosed.
The players
Adnoc Trading
Adnoc Trading is the trading arm of Abu Dhabi National Oil Company, which sold the Iraqi crude in this transaction.
PetroChina
PetroChina is China's largest oil and gas producer and a state-owned company, which sold West African crude in these deals.
Totsa
Totsa is a Swiss-based commodity trading company that sold West African crude to Chinese buyers in this transaction.
The details
Chinese refiners bought Iraqi crude from Adnoc Trading, while Totsa and PetroChina sold West African grades including Congo's Djeno, Angola's Dalia and Gabon's Mandji to independent refiners in Shandong province. The purchases were priced at premiums to ICE Brent on a delivered basis for December arrival.
Timeline
Deals completed last week, ahead of November 3, 2026.
Crude scheduled for arrival and delivery in December 2026.
Market Landscape
Chinese independent refiners in Shandong province have increasingly diversified their crude sourcing, buying West African grades alongside Middle Eastern supplies. This December delivery program extends that pattern as buyers compete for barrels amid premiums on delivered cargoes.
Delivered crude premiums of $10 to $20 or more a barrel can feed through to refined product costs that consumers pay at the pump. Changes in refiner sourcing also affect the supply of fuels used for transportation and industry.
The takeaway
Watch delivered crude premiums over the coming months, since rising premiums for both Middle Eastern and West African grades can signal tighter supply for refiners. Readers tracking fuel costs should note that sourcing shifts by large Chinese buyers can influence global crude flows.
Further reading
For broader context on crude supply and pricing, see Oil and Gas coverage.
Source note: This article includes information reported by CNBC Africa.
