Business
Asia overtaking the West in Africa oil imports
Negotiations
Analysts had expected Chinese buyers to take more West African crude cargoes in February as negotiations continue over term contracts between Iran and Chinese state oil companies.
Chinese buyers have made several high-profile purchases of crude oil from alternative sources of crude oil in recent weeks, moves traders said were designed to negotiate a better price for its imports of Iranian fuel.
Nigeria and Angola are Africa’s two largest exporters, shipping as much as 3.5 million bpd to international markets.
Chinese refiners typically buy very large quantities of Angolan crude, but many West African crude oil grades are lighter and sweeter than Iranian grades, so not all Asian refiners can switch easily from one to another.
Taiwanese buyers may also be seeking West African crude as an alternative to Iranian barrels, traders say. Refiners in Taiwan have so far bought around 10 million barrels of West African crude loading in 2012, up slightly from recent averages.
Trade sources say one Taiwanese refiner bought at least two cargoes, or 2 million barrels, of Angolan Cabinda crude, plus one cargo of Angolan Nemba crude and one cargo of Nigerian Bonny Light crude oil.
One Japanese buyer imported two cargoes of Gabonese Rabi Blend, possibly for burning, trade sources said.
