Chinese refiners snap up Saudi, Iraqi crude amid Hormuz crisis

Chinese refiners are ramping up crude oil purchases from Gulf producers through multiple channels, as the ongoing Strait of Hormuz crisis and Red Sea disruptions force buyers and sellers to adapt to fractured supply routes across the Middle East.

Saudi and Iraqi Crude Flows to China

State-run refiners PetroChina and Sinochem Group, along with Unipec — the trading arm of Sinopec China Petroleum & Chemical Corporation — and private processor Rongsheng Petrochemical, bought a combined 10 million barrels of Arab Medium and Heavy grades in a rare Saudi tender for prompt loading, according to Bloomberg, citing traders familiar with the matter.bloomberg

Separately, Chinese refiners have purchased at least 8 million barrels of Iraq's Basrah Heavy and Basrah Medium for prompt delivery, Bloomberg reported. Rongsheng Petrochemical and several state-run processors were among the buyers. Iraq has managed to boost exports via the Strait of Hormuz to about 2 million barrels per day since the start of August, according to the country's state oil marketing company.oilprice+1

The purchases come as China's overall crude imports remain well below pre-war levels. Imports rebounded 22% in July from a near-decade low in June but still lagged year-earlier volumes.bloomberg+1

Hormuz Crisis Reshapes Trade Routes

Iran has maintained an effective blockade of the Strait of Hormuz since late February 2026, following U.S. and Israeli air strikes against the country. Shipping traffic through the strait has dwindled sharply — falling to as few as five commodity vessel transits in a single day in mid-August, according to Reuters. Saudi Arabia has had to reroute exports away from Hormuz to the Red Sea and then northward via the Suez Canal to avoid Houthi attacks on its tankers and infrastructure.reuters+2

ADNOC Presses Ahead With Spot Tenders

Abu Dhabi National Oil Company (ADNOC) launched its ninth spot crude tender since June on Wednesday, offering Upper Zakum, Umm Lulu, and Das crude for loading in October and November, Reuters reported. Bids are due by August 24. ADNOC set a minimum price of $3 per barrel above Dubai on a netback Fujairah ship-to-ship basis, reflecting the premium buyers must pay for oil moved out of the blockaded Gulf.Business Recorder

ADNOC's total spot sales through its previous tenders have exceeded 86 million barrels, underscoring the scale of the effort to keep Gulf crude flowing despite the disruptions.reuters