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Market Chatter: Chinese Refiners Pick Up 8 Million Barrels of Iraqi Crude Despite Hormuz Shipping Risks

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Chinese refiners are reportedly snapping up Iraqi crude as barrels continued to flow out of the Persian Gulf despite persistent security risks and threats to shipping through the Strait of Hormuz, according to a Bloomberg report, citing traders familiar with the matter.

Rongsheng Petrochemical Co, a major independent refiner in China, along with several other state-run refiners, has reportedly purchased at least 8 million barrels of Iraq's Basrah grade for prompt delivery.

Despite mounting security concerns along the Strait, Iran's state oil marketing company said last week that the country's exports had risen to 2 million barrels per day in August.

Iraqi crude is expected to plug the supply gap for Chinese refiners, as supplies from Saudi Arabia remained under pressure due to issues in the Red Sea, while refiners also missed out on a recent tender by the UAE's ADNOC.

The China Petroleum and Chemical Industry Federation did not immediately respond to' request for a comment on this story.

(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.)

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