China Buys Angolan and Congolese Oil as Middle East Supply Disruptions Tighten Global Markets
Chinese independent refiners have increased purchases of crude oil from Angola and the Republic of Congo as disruptions to Middle Eastern supplies force buyers to seek alternative sources.
The purchases form part of a broader effort by Chinese refiners to secure crude from international markets as supplies from Iran and Russia become more difficult to obtain amid the ongoing conflict involving Iran and disruptions to oil flows through the Strait of Hormuz.
According to traders and industry analysts cited by Reuters, Chinese independent refiners, commonly known as “teapots”, have purchased at least two cargoes of Congo’s Djeno crude and one cargo of Angola’s Plutonio crude.
The African cargoes are part of a wider buying programme involving more than 20 million barrels of crude from West Africa, Canada and Colombia in recent weeks.
The figure represents purchases across these markets and does not refer solely to volumes sourced from Angola and the Republic of Congo.
The increased interest in African crude comes as Chinese refiners face tighter access to some of their traditional supply sources.
Disruptions to exports through the Strait of Hormuz have reduced the availability of crude from the Middle East, while supplies of Russia’s ESPO crude have also tightened as larger Chinese refiners absorb more available volumes.
The resulting competition has pushed up prices for several grades of crude. Congo’s Djeno crude, which had been trading at a discount in June, was reportedly sold at a premium of about $22 per barrel to Brent during the recent buying activity.
Russia’s ESPO Blend has also been trading at significantly higher premiums, with November-loading cargoes reportedly reaching about $12 per barrel above ICE Brent.
For Angola and the Republic of Congo, the increased interest from Chinese buyers highlights the role of African crude in responding to shifts in global supply chains.
Both countries are established oil producers and exporters, with grades that can serve as alternatives for refiners seeking crude outside the Middle East.
The development also comes at a time of heightened volatility across global oil markets.
Brent crude has risen above $100 per barrel as disruptions to Middle Eastern exports have tightened physical supply and intensified competition among refiners.
China remains one of the world’s largest crude oil importers, and its independent refining sector has considerable influence on international spot markets.
The country’s refiners have also been drawing on domestic inventories as refinery processing has exceeded the combined availability of imports and domestic production in recent months.
Reuters reported that Chinese refineries processed 13.91 million barrels per day in August, compared with available crude supply of 13.27 million barrels per day, resulting in a drawdown of inventories.
The latest purchases could therefore provide additional support for African crude grades as Chinese buyers diversify their supply sources.
However, the extent to which the trend continues will depend on the duration of disruptions in the Middle East, crude prices, shipping availability and the relative competitiveness of African grades against supplies from other producing regions.
For African oil producers, the changing trade flows underline the importance of maintaining reliable production and export infrastructure as global refiners reassess their supply chains in response to geopolitical and logistical disruptions.
