Chinese Refiners Buy African and Brazilian Crude as Tanker Freight Rates Ease

Chinese refiners are buying West African and Brazilian crude cargoes for December delivery after Atlantic Basin shipping costs eased by roughly $10 per barrel. Tanker rates on routes from the U.S. Gulf Coast to Asia have pulled back to around $60 million per voyage after peaking at $80 million, reopening arbitrage windows. High transport costs had previously driven Asian refiners to cut November U.S. crude orders by 50% to a seven-year low of 25 million barrels. Chinese buyers are now paying premiums up to $20 per barrel over ICE Brent amid a halt in Iranian crude supplies.