China’s return to buying oil has pushed up crude prices in Africa, Canada and Latin America, as refineries seek replacements in more distant locations due to disruptions in the Strait of Hormuz.
Based on a Bloomberg report, this week Genou Congo crude was offered to Chinese buyers at a price up to $20 higher per barrel than Brent, compared with about $15 two weeks earlier.
This jump has driven smaller Chinese refineries with tighter profit margins out of the market.
China’s purchases have not yet returned to pre-war levels and are heading toward 10 million barrels per day, while they were 12 million barrels per day before the fighting.
Bloomberg wrote that this trend in China is taking place at a time when exports of oil by the Islamic Republic of Iran have been almost completely zeroed out due to the U.S. embargo.


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