China's Rebound in Oil Buying Drives Up Premiums for African, Canadian, and Latin American Crudes Amid Hormuz Disruptions

China, the world's top oil importer, has ramped up purchases of alternative crude supplies from Africa, Canada, and Latin America, pushing prices higher as supplies from the Middle East remain constrained by disruptions in the Strait of Hormuz and reduced Iranian exports. This shift follows a period of subdued Chinese demand that had helped cap global oil prices earlier in the conflict.

According to Bloomberg reporting, Congo's Djeno crude has been offered to Chinese buyers at premiums as high as $20 per barrel over ICE Brent, up from around $15 two weeks prior. Chinese refiners are also acquiring cargoes from Canada, Brazil, and Argentina, while demand has lifted prices for Russia's ESPO blend. Asian buyers are pushing Dubai crude futures toward $100 per barrel.

Chinese seaborne crude imports are trending toward 10 million barrels per day—below pre-conflict levels—but refinery margins have improved, inventories are being rebuilt, and fuel export restrictions have eased, encouraging purchases. Smaller independent 'teapot' refineries, previously reliant on discounted Iranian and Venezuelan barrels, face particular pressure as those sources have dried up.

The rebound coincides with reported strikes on Saudi Aramco's Jizan facilities, which have added to supply concerns. Analysts note that while China's massive strategic petroleum reserves provide some buffer, the selective buying could moderate extreme price spikes.

This dynamic highlights China's role as a 'swing importer' capable of influencing global markets through demand adjustments.