Asian Refiners Turn to Argentina as Iran War Disrupts Oil Supply
CommodityGeopolitics
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, according to anonymous traders with knowledge of the purchases. 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. In recent weeks, refiners have bought Argentina's Medanito crude, with at least one cargo loaded earlier in August, and the grade is being sold at a discount of $1-$2 per barrel versus U.S. West Texas Intermediate. 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. The chokepoint-free trade route around South America and into the Pacific has raised Asian appetite for Argentinian oil, and other South American producers, including Brazil and Venezuela, have also become popular among Asian refiners seeking to minimize risk.
