Chinese Teapot Opts for African Crude Over Iranian, Russia Flows

A privately owned Chinese refiner bought a cargo of West African crude in a rare purchase that’s piqued traders’ interest given smaller, independent processors in China have typically tended to favor imports of sensitive, US-sanctioned grades from Iran and Russia.

Landbridge Petrochemical Co. — which recently restarted operations after a prolonged shutdown — bought 2 million barrels including Mostarda grade for January arrival, according to traders. While such plants — known as teapots — have mostly been purchasing Russia’s ESPO and Iranian oil given those cargoes tend to be cheaper and have shorter delivery routes, conditions have been shifting, making other flows more attractive, they said.