Asian Refiners Seek Oil from Argentina Amid Iran War Disruptions
Refiners in Asia are increasingly sourcing crude oil from Argentina to mitigate supply disruptions caused by the ongoing conflict with Iran. China, Japan, and South Korea have turned to alternative suppliers after relying heavily on Middle Eastern term supplies before the war began. These refiners now seek barrels that avoid geopolitical hotspots like the Strait of Hormuz or lengthy detours through the Red Sea. Argentina's Medanito crude has become a popular choice due to its quality, which is comparable to U.S. West Texas Intermediate (WTI), and because it travels directly via the Pacific without passing through chokepoints such as the Panama Canal. Sales of Argentinian oil in Asia have surged this year from negligible levels just two years ago. Medanito crude is currently being sold at a $1-$2 per barrel discount to WTI, according to trade sources. Other South American producers like Brazil and Venezuela are also gaining traction among Asian refiners as they look to diversify their supply chains away from the Middle East.
Topics: Argentina Asia crude oil imports Iran war impact supply diversification