Private refiners in China have increased their purchases of cheaper Middle Eastern oil after traffic increased on the Strait of Hormuz, Bloomberg News reported Friday.
Rongsheng Petrochemical (SHE:002493) bought crude oil from Saudi Arabia for July delivery, while Shandong Chambroad Petrochemicals purchased Iraq's Basrah crude for August arrival. Shenghong Petrochemical also acquired Upper Zakum crude from the United Arab Emirates, the report cited traders with knowledge of the matter.
Several Saudi and Iraqi crude cargoes were sold to China on a delivered basis at discounts of up to $5 a barrel to Brent futures, the report said.
Rongsheng Petrochemical, Shandong Chambroad Petrochemicals, and Shenghong Petrochemical did not immediately reply to' request for comment.
Shares of Rongsheng Petrochemical added nearly 4% in recent trade.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)