Africa And Brazil Are Displacing Russia From China
- 28.10.2026, 13:30
New leaders have emerged in the oil market.
Chinese oil refineries are increasing their purchases of crude oil from West Africa and Brazil, seeking an alternative to Russian supplies. Lower shipping costs are making deliveries from these regions more profitable, while Russian ESPO crude continues to sell at a premium to Brent crude, according to Bloomberg (translation by Charter97.org).
For Chinese buyers, this is an opportunity to diversify their purchases and reduce their dependence on competition for Russian barrels. At least one independent Chinese refinery, known in the industry as a “newcomer,” has already purchased a shipment of oil from Brazil for delivery in December.
Meanwhile, Russian ESPO has lost some of its price advantage. In late September, the price of this grade rose to about $30 per barrel amid disruptions linked to the U.S.-Iran conflict and increased demand from India and major Chinese companies. It has now fallen to about $20—though at the end of August it was only about $5.
At the same time, shipping costs for oil from alternative regions are falling. The cost of shipping from West Africa to China has fallen from about $33 to $24.50 per barrel. Shipping from Texas to South Korea has dropped from $42.60 to $31.
Among the grades purchased by Chinese refiners are Ceiba from Equatorial Guinea, Saturno from Angola, and the Brazilian Mero. Iraqi Basrah is also being offered to Chinese buyers at a premium of about $15 over Brent.
This shift in procurement does not mean China is completely abandoning Russian oil, but it intensifies competition for the Chinese market and gives refiners more opportunities to choose suppliers based on price.
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