China's Rongsheng on Middle East crude buying spree, premiums rise

London, (Quantum Commodity Intelligence) – The latest buying spree from Rongsheng Petrochemical Co. has seen the Chinese independent refiner snap up some 12 million barrels of crude oil from the Middle East this week, helping lift premiums spot cargoes.

The grades include Oman, Abu Dhabi grades Upper Zakum, Murban and Das, along with Iraqi Basra Light and Iraqi Medium.

Prices were not disclosed, but Murban was valued at around July Dubai swaps +$1.75-$1.80/b, while Upper Zakum this week was bid at July Dubai swaps +$1.25/b.

However, medium sour grades including Upper Zakum, Oman and Basra Light are seen at around Dubai swaps +$1.40/b.

Rongsheng's monthly spot buying round has become a key market event and a proxy to gauge upcoming demand from China's burgeoning private refining sector.

Its ZPC refinery in Zhejiang, northeast China, has a capacity of 800,000 barrels per day since doubling size in Q4 2020.