Asian Oil Buyers Turn to Africa and Brazil as Tanker Rates Plunge

AI Summary

Asian oil buyers, including China’s Sinopec and South Korea’s SK Energy, are turning to African and Brazilian crude as lower tanker rates make those shipments more attractive. Freight rates for Gulf-origin oil remain exceptionally high, while rates for South American and African cargoes have eased.

Asian energy commodity buyers are increasingly turning to African and Brazilian grades, attracted by lower prices as rates for shipping oil out of the Persian Gulf remain near historic highs. Freight rates were at record levels for South American and African cargoes earlier this year, but have now declined enough to entice Asian buyers, Reuters noted in a report, citing unnamed sources including traders, shipbrokers, and analysts. The sources listed China’s Sinopec as one of these buyers along with South Korean SK Energy. Both companies bought…