Brazil’s crude oil flows to China’s independent refineries, along with flows from Angola, plummeted in the months leading up to May, according to data from S & P Global Commodity Insights.
Brazil’s crude oil flow to Chinese refineries was January 2016, with moves that could help refiners increase margins as buyers turn to attractively priced barrels from Russia and Iran. It became almost zero for the first time since the month.
Shipments from South American exporters, once a strong favorite of Shandong-based independent refiners, reached a record high of 3.8 million metric tonnes (mt), or 899,000 barrels per day, in July 2020. It has been on a downward trend since S & P. Global data showed. In contrast, the independent refinery imported 499,000 tonnes of Brazilian crude oil in April 2022 and 1.5 million tonnes of Brazilian crude oil in May 2021.
For the time being, trade sources said independent refiners would find it difficult to resist, as large amounts of discounted Russian crude oil are likely to be available.
In addition, traders said some Iranian oil volumes have replaced Brazil’s supply as crude oil from both Russia and Iran was offered at a discounted price to ICE Brent futures for delivery to Qingdao. rice field.
“Europe uses more oil tankers than ever before. And almost every Brazilian oil tanker that comes to China is taken by state-owned enterprises. Independent refineries will have oil in the coming months. There may be only one or two tankers, “said a Chinese-based oil trader.
Brazil’s Petrobras owns 67.216% of the Tupi oil field 250 km off Rio de Janeiro and continues to prioritize supply to the domestic market over exports of Tupi crude oil sales, trade sources say S & P Global. Told to. ..
As a result, crude oil imports from Brazil at independent refineries fell 61.2% year-on-year to 2.95 million tons from January to May, dropping from 4th place to 7th place in the same period of the previous year.
According to data, CLBrief reports that Angola’s supply fell by 55.5% to 2.76 million tonnes by May.
