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Higher Saudi OSP Boosts Brazilian Flows to China

OIL

Chinese refiners – led by Sinopec are set to boost Q3 Brazilian crude imports to replace some Saudi flows after the recent OSP hikes according to Reuters sources.

  • China has booked nearly 1 million barrels per day of Brazilian crude for August and September delivery.
  • Crude imports from Brazil have averaged 730,000 bpd in the first five months of the year.
  • The narrow Brent-Dubai price gap, along with lower freight rates and rising production in Brazil, have enabled more oil from the South American producer to be shipped to China, Reuters sources said.

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