The volatility in the tanker market remains a primary driver for Asian procurement strategies. Shipping a supertanker from the U.S. Gulf Coast to China reached an unprecedented $80 million earlier this month—a tenfold increase over historical averages. While costs have softened, the expense remains prohibitive for many November deliveries, forcing a strategic shift toward shorter-haul Atlantic Basin routes.

Chinese buyers have recently moved to procure specific grades, including Equatorial Guinea’s Ceiba, Angola’s Saturno, and Brazil’s Mero. These trades are currently settling at premiums reaching $20 above ICE Brent. This shift follows a period where elevated logistics costs and a U.S. blockade in the Gulf of Oman effectively squeezed independent refiners, known as teapots, out of their traditional Iranian supply chains. Simultaneously, aggressive competition from Indian refiners for Russian Far East oil has driven up ESPO prices, further incentivizing Chinese firms to diversify their intake toward the Atlantic.