Some Chinese refiners have purchased West African and Brazilian crude for December delivery at premiums of up to $20 per barrel above ICE Brent, according to Bloomberg.

The shift comes after tanker rates surged following the escalation of the Iran war, making long-distance crude shipments significantly more expensive. Shipping a cargo of oil from the U.S. Gulf Coast to China reportedly cost as much as $80 million earlier this month, roughly ten times the historical average tanker rates.

Although freight costs have eased, shipping a supertanker from the United States to Asia still cost about $60 million last week, discouraging Asian refiners from placing substantial orders for U.S. crude for November delivery.

Data from Vortexa, cited by Bloomberg, showed that in early October, freight costs exceeded $42 per barrel on the U.S. Gulf Coast-to-South Korea route, $39 per barrel from Brazil to China, and $32 per barrel from West Africa to China.

Those costs have since fallen by approximately $10 per barrel across the routes, encouraging Chinese buyers to purchase Equatorial Guinea’s Ceiba crude, Angola’s Saturno and Brazil’s Mero.

West African oil gains as Chinese refiners seek alternatives

The shift highlights the growing importance of African oil producers as China, the world’s largest crude importer, adjusts its purchasing strategy amid geopolitical disruptions.

Competition with India for Russian supplies has pushed up prices for ESPO crude from Russia’s Far East. Meanwhile, U.S. restrictions affecting Iranian oil shipments have forced independent Chinese refiners, known as teapots, to look beyond their traditionally cheaper Iranian feedstock.