Asian Refiners Turn to Argentina as Iran War Disrupts Oil Supply
Asian crude oil importers, including China, Japan, and South Korea, have turned to buying oil from as far as Argentina to offset supply losses from the Middle East, anonymous traders with knowledge of the purchases told Bloomberg on Monday. Refiners in Asia, which have relied on the Middle East for a large part of their term supplies before the Iran war, are now scouring the global crude oil market for alternative barrels that do not need to pass through the Strait of Hormuz or other geopolitical hotspots, or take a month longer to deliver from the Red Sea via the Mediterranean and the Cape of Good Hope in Africa.
Why It Matters
This story touches on china, japan, iran — topics readers are actively tracking. Review and add editorial context before publishing.
Key Facts
- Fact 1: Argentina’s oil sales in Asia have jumped this year from 2025, and from no exports at all until 2024, according to Argentinian government data compiled by Bloomberg.
- Fact 2: Medanito is being sold at a discount of $1-$2 per barrel versus WTI, the trade sources told Bloomberg.
Asian crude oil importers, including China, Japan, and South Korea, have turned to buying oil from as far as Argentina to offset supply losses from the Middle East, anonymous traders with knowledge of the purchases told Bloomberg on Monday. Refiners in Asia, which have relied on the Middle East for a large part of their term supplies before the Iran war, are now scouring the global crude oil market for alternative barrels that do not need to pass through the Strait of Hormuz or other geopolitical hotspots, or take a month longer to deliver from the Red Sea via the Mediterranean and the Cape of Good Hope in Africa.
Argentina fits the bill, and some refiners in Asia have bought cargoes from the South American producer. In recent weeks, refiners in Asia have bought Argentina’s Medanito crude, and at least one cargo of the oil comparable to the U.S. West Texas Intermediate loaded earlier in August, according to Bloomberg’s sources.
(Original synthesis pending human/AI review — generated by the stub provider by selecting real sentences from the source material, not by writing new analysis or commentary.)